Ive been the 40 times I have been involved with selling and implementing software solutions ECM, BPM, Record Management, Core Banking , Finance, Treasury and Credit Management etc Systems. Ive implemented many similar systems right across Asia so I am in position to compare at very micro level with any country in Asia. Ive also run credit and lending collections for two of the major credit providers in Australia.
Ive walk the halls of these banks at the branch and hub operation level. I know whats there I have seen it with my own eyes . Solid banking process and systems have never existed in China when pressure is placed on them they are likely to implode.
its not "debt" thats important, its debt vs income vs realizable assets, we keep referring to reserves , although reserves mean nothing without standing those reserves next to the debt vs income in an economy. Debt in China last year expanded by 50% of its GDP in one year.
People talk about the potential hyperinflation of the USD, IMO they are looking the wrong way the currency that is likely to enter hyperinflation is China. Remember they did it in 1949-50. The Chinese could exhaust their resource very quickly if defaults rose.
