For example, Japan just reported another trade deficit. Despite forecasts for a gain in exports, they grew at the slowest pace in more than a year in September, while exports to China fell 3.5 percent. "China-bound exports fell for a second straight month in terms of value and volume, that weighed on exports," a finance ministry official said. "We must pay the utmost attention to China." Indeed, from the bottom of the food chain to the top of the retail market, from Yum Brands to Burberry, the more the Chinese economy slows down, the greater the economic pain. Yes, "we must pay the utmost attention to China." But with Zero Interest Rate and quantitative easing policies having failed to generate sustained economic growth among developed nations, the oncoming global recession is much bigger than China. – Gerald Celente, Trend Alert

Dominant Social Theme: So what if China is slowing? The rest of the world is doing fine.

Free-Market Analysis: In writing about China yesterday, we emphasized how sooner or later the economy was going to unravel further, following on the heels of its disastrous market drop – and that China's difficulties were a direct result of the Western, central bank model that China had adopted decades earlier.

We didn't comment on China's just-released gross domestic product numbers or their reception. Nor did we comment on what we may see in the near future regarding a divergence between gold and silver and commodities generally, especially if the Chinese economy continues to weaken rather than strengthen.

So in this follow-up article, we'll deal with both of these issues – and we thank Gerald Celente for bringing them to our attention via the "Trend Alert" he released yesterday afternoon. Celente makes the point that China's phony numbers are finally being rejected by the larger financial community. He wrote:

The numbers are in. The markets don't like them and the Street doesn't believe them. For the past week, global equity markets traded in a narrow range waiting with great anticipation for Gross Domestic Product numbers from China, the world's second largest economy. Barely beating economists' estimates for a 6.8 percent increase, China's National Bureau of Statistics announced Monday that GDP growth for the third quarter ending in September from a year earlier registered a 6.9 percent gain.