This thread details China's main secret to economic success.
It is built on the largest and fastest growing debt bubble in modern history.
Having lived there for yrs, I know from 1st hand experience.
It is built on the largest and fastest growing debt bubble in modern history.
Having lived there for yrs, I know from 1st hand experience.
Today, the ratio of Chinese banking system assets to GDP (a measure of financial system debt) is higher than it was in the EU on the eve of the 2011 European Sovereign Debt Crisis and nearly six times that in the US before the 2008 Housing Crisis.
China's banking asset growth drawfs all others...
In the west, we hear constantly about US, EU and Japanese debt - and they are a major bubble, but nothing compared to China!
In the west, we hear constantly about US, EU and Japanese debt - and they are a major bubble, but nothing compared to China!
Much of China’s debt has gone into massive infrastructure projects throughout the country. Accordingly, China is now spending nearly 90% of GDP to build infrastructure despite persistent overcapacity problems and numerous ghost cities that still remain essentially empty years.
As a result, the mirage of ‘Capitalism with Chinese Characteristics’ as a viable alternative to free markets persists.
The 'western' way of good accounting practices, representative government, the free flow information, and free markets are been questioned.
But debt is debt.
The 'western' way of good accounting practices, representative government, the free flow information, and free markets are been questioned.
But debt is debt.
The coming debt crisis will usher in an opportunity to introduce a crypto yuan - that will also enable the gov't to track/control every financial transaction in China.
Read this very interesting article to learn more:
blog.goodaudience.com/chinese-blockc…
Read this very interesting article to learn more:
blog.goodaudience.com/chinese-blockc…
