Welcome to the grand illusion
Come on in and see what's happening
Pay the price, get your tickets to the show
--Styx
Proponents of the China often cite the country's clean balance sheet as an asset. Very little debt, they say.
This article suggests that some of this condition is an accounting phenomenon. Chinese officials appear to understand SIVs and SPEs just as well as their overseas counterparts.
Over time, what is certain in my mind is that Chinese debt levels will grow. Centrally planned economies misallocate capital in large quantities. To make up for losses, and to fulfill political promises, officials will turn to borrowing resources that their economic engine cannot produce.
no positions
Subscribe to:
Post Comments (Atom)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
1 comment:
So if you look back over the long history of China, they've never tried to take over the world, but they've been quite aggressive in their own neighborhood... in carrying out their own purposes and interests in their sphere of the world.
~Fred Thompson
Post a Comment