CHIR - Debt And Demographics: China's Real Problem Has Nothing To Do With Trade
What is a growth rate that China can live with? And afford?
Chinese growth rates have steadily fallen since the debt-fueled bonanza that marked the government’s navigation of the 2007-2008 downturn. On the surface, the Chinese economy appeared to substantively avoid the crisis that acutely punctured markets across the globe. A decade later, however, China is buried in red ink and growth rates have now sunken below their financial-crisis-era lows.
(image credit: BBC)
The explosion of Chinese debt threatens the not-so-long-term efficacy of the economy and even societal stability itself. In particular, stimulus spending may