China: “4th year in a row that net new credit exceeds 1/3 of GDP”

Chain’s expansion of credit has been vast — said to be the equivalent of creating the entire US commercial banking sector in five years. And the Shanghai exchange is back to 2000 from 6000 not so many years ago. Not a good picture. An article in Foreign Policy says that the economic and political transitions necessary in China are going to be very hard to manage. We think that’s an understatement.

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