"Yes, the idea that there is big trouble in not-so-little China, based on some very weak Chinese factory orders and a stock market that is being proper up by the Communist party, lay behind today's carnage," the "Mad Money" host.
The complete rollover of the commodity sector has investors thinking that something evil lurking in China might take the whole world down with it. This was evident when the breathtaking collapse of raw goods on Friday had things falling apart all over the place. Cramer also saw it with Yelp, which he thinks has completely lost its mojo.
All over the place... except for the United States. In fact, Cramer suspects that the confluence of the robust economy in the U.S. with problems overseas will really hit home next week. (Tweet This)
Cramer gives the Fed some credit, as it held off tightening earlier because it was worried about the impact of a Greek-related disaster in Europe. But now that the Greek drama is over, should the bulls hope that the Fed will hold off again because of China?
Or will it decide that growth without commodity inflation is a good thing and not do anything? Or will it say that the U.S. has wage inflation, so it is time to raise rates?
On Wednesday, the Federal Reserve will be making its decision on interest rates. Due to the very robust job growth currently in the U.S., the Fed is widely expected to confirm that it will raise interest rates in September.
At this point if the Fed were to raise rates, Cramer thinks it would send the dollar soaring, which would prompt U.S. based international companies to do poorly, which would then result in negative earnings in the future.