Apologize for the dearth of posts, work has been very busy among many other things (such as the summer fair and fleet week for the port city that I live in) but for your intellectual consumption here is a post about the declining profitability of Chinese firms. I am fully aware that I keep harping on China like its the fat smelly kid in the room but keep in mind, the entire system is very sick.
I do not think the first brick to fall will be in the US, though they will fall since we sit atop the current financial/economic system; I think its a race between Europe or China. When China dips below 5% growth you will see some serious hand wringing, in fact you could see a serious escalation of instability in a nation already dealing with a fair amount of instability. For the Europeans this charade will last as long as Germany, or a nation like Spain, says it does. The moment Germany says nien, or Italy says ciao to the euro, well that's the moment things get ugly. For the US I don't think we will see this sort of thing until after the November election.