Friday, May 20, 2016

"China’s Drunken Excess 
Makes Japan Look Like A Teetotaler"
Harry Dent essay on the impending challenges of China, given its negative demographics & massive debt levels .. references Kyle Bass* who estimates that China’s bad debt exposure is at least five times that of the subprime crisis in the U.S. .. Dent: "Two things are happening now in China that most people aren’t fully aware of. The country’s on track to create $4 trillion in new debt this year alone, or nearly 40% of its GDP, building houses for no one, while rural migrants are declining for the first time in 30 years. In other words, the very people it’s overbuilding all these condos and infrastructure for are leaving! After decades of rapid urbanization, no one saw that coming." .. "China thinks they can keep wishing money into existence without ever having to pay the consequences. When has a drug addict ever gotten over their addiction without a relapse?"
LINK HERE to the essay

No comments: