chinese debt out of control, page-28

BW

I dont know who is drinking the media kool aid. Ive been there many times as well, first trip in 1981 and countless since. I have dozens of contacts who currently live there today. I dont think we are talking about measuring the stability of the economy from what you see out of the taxi window on the way to the hotel. Its a bit more in depth that that.

You cant make economic predictions by massive generalized observations about laziness and savvyness......there are massive flaws in both economies.....corruption for instance , last week I had lunch with one of the key consultants to the bullet train disaster , he tells me the scandal is many times worse than reported here

http://www.ihatethemedia.com/china-all-aboard-the-bullet-train-to-bankruptcy

I have dozens of these examples

There is not doubt they population have bought many shiny things with the growth that has gone on. Shiny things are not a measure of economic health.

The reality is their monetary policies border on madness. I only say this from a historical perspective, no economy in history has survived these kinds of monetary policies. Its that simple.

Debt owed to domestic savers is mostly worse than that owed to offshore savers. if the borrower doesnt pay the saver who lent the money in country loses their money.