3 ms·
The problem is not the growth rate but how they are getting that growth. Credit growth is increasing significantly faster than GDP and, since the 2008 financial
by jhonovich 11y ago
The problem is not the growth rate but how they are getting that growth. Credit growth is increasing significantly faster than GDP and, since the 2008 financial crisis, China has 'invested' massively and inefficiently. This is not sustainable.
- forgetsusername 11y ago>"This is not sustainable." Why does spending have to be sustainable to be practical or good? It needs only be temporary and helpful.
- AnimalMuppet 11y agoThe problem is that "not sustainable" often turns into "temporary and temporarily helpful". When it quits being helpful, though, it can bite you hard enough that it wasn't worth it. (See 2008 for an example.)