THE CRISIS OF CHINESE DEBT, PERMANENT MISALLOCATION & DISLOCATION OF RESOURCES; BEIJING JAILS THE FUTURE, IS THIS CHINESE LEADERSHIP?
China debt warning: The IMF’s latest annual health check on Asia’s biggest economy is blunt, sweeping and sure to ruin Xi Jinping’s month as the Chinese president tries to maintain a veneer of omnipotence and stability, William Pesekwrites. The IMF’s worry is debt. It has seen this horror film before in neighboring Japan and the odds of a happier ending for China are negligible. “International experience suggests that China’s credit growth is on a dangerous trajectory, with increasing risks of a disruptive adjustment and/or a marked growth slowdown,” the IMF said. When viewed through the lenses of past scenarios in Japan, Southeast Asia, and South Korea, the picture looks far from hopeful. READ THE STORY HERE