China: What Happens When A Dragon Flaps Its Wings?

Evergreen Virtual Advisor – China: What Happens When A Dragon Flaps Its Wings? by Evergreen GaveKal

“The world economy is like an ocean liner without life boats.”

– Senior HSBC economist, Stephen King.

What Happens When a Dragon Flaps its Wings?

Have you ever heard of the butterfly effect?

It’s the idea in chaos theory that small events in a complex system can result in big changes over time. A butterfly flapping its wings over the Puget Sound can supposedly set a series of events in motion that ultimately hurls a Category 3 hurricane onto the shores of South Louisiana. Or a flock of seagulls flying over the beaches of Brazil can trigger a freak snowstorm in Tel Aviv. In other words,...