China - Center of the third phase of the global economic recession (FX)

... China is one country that we feel is still at risk of an accelerated slowdown, and this in our opinion will be the center of the third phase of the global economic recession, which began in the Unites States, spread to the Eurozone and will soon touch down in China. The latest IMF warnings that China’s financial system is facing a steady build up in vulnerabilities, only help to reaffirm our bearish outlook on the economy. For now, however, the key focus is still in the Eurozone, and the negative attention has now shifted to Spain, with the country’s bond spreads hitting record levels and elections on the horizon.