CNY - Debt Can't Save China Anymore
The 2008 financial crisis hit China hard, as it did everyone else.
Not every country responded like China did, though. Most couldn’t do what China did because they lacked either financial resources or political ability.
China had both. And so it launched a stimulus program of mind-boggling proportions.
China’s Stimulus Is Built on Shadow Banking
Beijing compelled local governments and state-owned enterprises to take on massive debt for giant infrastructure projects. Yes, they simply built ghost cities.
The intention was to put people to work and bolster public confidence.
It’s no surprise that China