china boom still has plenty of momentum, page-8

Greg Canavan agrees with Chanos' bearish calls for China, "I am absolutely certain that combining a credit bubble with a Communist regime was a recipe for disaster. The credit bubble is playing out like they all do — first the inflation, then the deflation. First the boom, then the bust".

The early signs of deflationary risks are already developing in China;

http://www.economonitor.com/blog/2012/07/strategic-briefing-deflation-risk-in-china/

And no central bank or government, not even China's, can prevent a credit bubble from deflating once it's reached capacity.