China Boooomblast !!!

China's trade surplus surged to a record for 2007 adding pressure on the government to let the yuan rise faster to prevent the economy from overheating and cool inflation. If exports slow in China, you'll see a lot of overcapacity, you'll see margins collapse, you'll see deflation and you'll see a lot of non-performing loans.

``A butterfly flapping its wings on Wall St, combined with that domestic monetary tightening, and not forgetting yuan appreciation, has the potential to cause a significant slowdown in overall growth in China,'' Green said.