This will be worse than people are first thinking.
China only put in $3 Trillion of public debt, the other $12 Trillion was private debt from investors.
What did they spend the money on? new Airports, New roads, and well over 60 million homes no ones buying.
US needed to print less than $1 Trillion to bail out the banks on a couple million failed mortgages... But china has 60 million homes stood empty.. as well as all the high risk borrowing from companies that are now winding down and closing up.
The $3 Trillion of $US that America owes chine isn't going to cover the bill, nor do America even have the money to pay it back. Can you see America selling $3 Trillion in bonds to cover it? who would buy them?
This is going to lead to a massive credit crunch, just a matter of time now... there is no getting out of it.
