Article Review #2

This is another article written by David Stockman. He still uses a extensive economic vocabulary, but I found this article easier to comprehend than the previous "Chicken Little" article. His overall argument is that the economy is heading to another recession. The author rants about China, and claim that China's economy is in collapse due to capital outflows and that the Communist party is trying to prop up a house of cards with more controls on the market and through devaluation of the yuan.  The problem is that the owners of the goods are trying to sell to keep the value of the goods. This is causing a drop on the stock market and in the trades between countries, threatening to burst bubbles in global financial systems. He makes the argument that China is giving people a false sense of hope with it's large population. He then connects this collapse in Chinese financial markets with an overproduction of commodities, including steel, that has led to overbuilding in Chinese cities that now threatens to become a "freight train of deflation" that will eventually make its way over to America. It will begin to affect us the same way it affects other countries, causing our economy to reach a downwards spiral. I would give this article a difficulty rating of 2.5/3.