This slide is also quite revealing (and will have to be the last I reproduce here since the presentation is confidential and I am not supposed to be seeing it).
PMI refers to Purchasing Managers' Index.
This is, in a snapshot, the Chinese economy (sort of).
Car sales are down, inflation is up, companies are not purchasing (and therefore presumably not investing).
Of course, it is an axiomatic argument to say that if the West is not buying then countries that export to the West are going to experience a downturn.
Also China has sucked a lot of money out of the world economy by refusing to spend savings (both sovereign debt and household savings).
You can understand their reluctance to reflate the whole world.
But they could just splurge their money in one easily controlled area and let it seep out into the West. The United Kingdom would be perfect for this. They could make us the Hong Kong of the Atlantic economy.
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