China impact crusher could look for other ways out of the woods in the overheated economic situation

Overheated Economy refers that the speed of development of the market supply and market demand, are out of proportion. The increased supply of capital, because of the false demand, is essential reason of the market economy overheating. Capital growth rate is faster than the amount of the actual market cycle, in a certain cycle stages, causing the paradox phenomena of  the the market shortage of resources and a certain excess of resources at the same time. Within a period, it always shows high-rapid economic development and the high price index. According to the definition of economics, the actual growth rate exceeds the potential growth rate called the economy from overheating, and its basic features of the economic elements of aggregate demand to exceed the total supply, which led that the comprehensive price index continues to rise. Economic overheating staged in the Chinese classical style in the early 1990s.

Overheated economy can be divided into "consumer-driven overheated economy" and "investment-driven overheated economic". The overheated economy due to strong consumption of people is called consumer-driven economic overheating; "investment-driven economic overheating", that is" excessive investment ", which contains two aspects of meaning:

First, after the completion of the investment projects, the products are not expected in the market demand, so product accumulated, the funds could not be recovered, resulting in a serious waste of the means of production. At this level, the "over" refers to the excessive demand for investment relative to the market.

Second, the spreading scale of investment is too extending, so that exceeding the capability of financial burden, and the investment can not be completed according to schedule, resulting that it could not form the expected production capacity. This level of "over" is the scale of investment relative to the excessive financial burden.

At present, sales situation of impact crusher in China is fairly fine, although economic downturn in European has brought certain negative effects on us, there is an upside. Economic downturn, European countries will come up with large sums of money to stimulate investment, there must also be conducive to China's impact crusher sales.

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