By Nicholas Zelinsky,
Money and Investing Writer
China has been an economic powerhouse over the past decade or so putting up consistently good numbers indicating a strong economic growth rate.
However, the dynasty appears as though it is coming to a close.
China’s economy continues to slow down with both exports and imports coming in lower than expected for the month of September.
Nothing is conclusive in the sense that China will start to have a negative economic growth rate.
In other words, China is not taking a massive economic hit nor are there any indications of any events occurring.
The point is that China’s human is starting to look human again, and has proven to not be a robotic machine of pure economic power.
This affects China greatly for obvious reasons.
The PRC will have to address the issues that revolve around this slowing of growth.
The United States government also has some major decisions to make too that will have an impact similar to that of a ripple effect.
The United States will have to determine how they want to set their interest rates.
It is not expected that the government will spike their interest rates, however at this point it is too soon to speculate interest rates making a move in either direction.
The oil industry will be seeing some changes as well with their growth settling down.
After seeing a session high of 1.75 percent, prices settled at around $49.24 per barrel (around 1.2 percent).
These prices are falling due to an oversupply of oil.
The prices are only expected to be brought further down with Iranian oil soon to become a factor in the global market again soon, as reported by OPEC.
These prices seem to be due to the fact of China’s slowing down of economic growth, however it is not entirely dependent on such occurring.
Oil is in high supply, and the demand for 2016 appears as though it will be lower than it was in 2015.
So regardless of the events taking place in China oil prices were expected to go down.
It just so happens that these two occurrences are happening at once.
Other factors coming into play when it comes to the price of oil is a firmer U.S. dollar.
With the U.S. dollar being of more value, it hurts the value of other currencies, making it more expensive for owners of other currencies.
This is shown as the U.S. price of oil has gone down, and then the price for oil in Euros increased by .02 percent, and similarly the Yen also added .02 percent to their prices.
This also has a wider effect since those companies, since they are bringing in less revenue, are not able to fund as many workers.
This is supposed to put out an estimated 5,000 workers out of jobs, having a much broader effects than saving people money on gasoline.
These drops are not permanent, and are not meant to ignite fear or wild speculation on what is to come in the future.
These are just indicators that change is occurring, and you should not be surprised if more change is imminent.
The United States is not playing a major role in these changes, but it is not far fetched to say that these changes will have a major impact on the United States.
A version of this article appeared in the Tuesday, October 20th print edition.
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