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Yup China grew......by borrowing 32Trillion http://www.businessinsider.com/china-debt-to-gdp-statistics-2016-1?r=UK&IR=T http://www.businessinsider.com/china-de

Yup China grew......by borrowing 32Trillion http://www.businessinsider.com/china-debt-to-gdp-statistics-2016-1?r=UK&IR=T http://www.businessinsider.com/china-debt-to-gdp-statistics-... in order to support dead state companies http://www.dailymail.co.uk/news/peoplesdaily/article-3422491/Inside-China-s-zombie-factories-Grim-pictures-bustling-steel-plants-completely-abandoned-nationwide-slashing-production.html http://www.dailymail.co.uk/news/peoplesdaily/article-3422491... and build empty cities and buildings http://www.chinatopix.com/articles/75493/20160126/shanghais-pentagon-style-shopping-mall-today-chinas-largest-empty-building.htm http://www.chinatopix.com/articles/75493/20160126/shanghais-... http://www.citymetric.com/skylines/enough-empty-floor-space-cover-madrid-so-why-are-chinas-ghost-cities-still-unoccupied-1180 http://www.citymetric.com/skylines/enough-empty-floor-space-.... Now they have to layoff tons of steel/cement/coal workers, around 400,000 to start http://www.bloomberg.com/news/articles/2016-01-26/china-steel-cut-plan-risks-400-000-jobs-instability-institute http://www.bloomberg.com/news/articles/2016-01-26/china-stee..., and 300,000 soldiers. Ironically, these unemployed million of disgruntled workers will not move into the empty buildings in the city; They'll most likely move back to the countryside. They will, however, be back in the city for protesting.

adventured 11y ago
It's bizarre that you're getting downvoted. The sole reason China's economy kept - supposedly - growing so quickly after the great recession was due to the extreme amount of debt they took on. China took on the greatest pile of debt in world history in the shortest amount of time. Nothing like it has ever been seen before. They're now arguably the most indebted nation when you combine public + private debt, and it continues to expand. They have no way to reduce that debt, as the moment they take their foot off the debt gas their economy will crash, and yet their new debt is generating almost no growth return. They're bleeding reserves, they're overflowing with zombie corporations, their asset classes keep trying to implode and require constant large bailouts, and they still have nearly a billion poor people to deal with and half a billion pretend farmers without jobs. How could they be more of a disaster?

adventured 11y ago

It's bizarre that you're getting downvoted. The sole reason China's economy kept - supposedly - growing so quickly after the great recession was due to the extreme amount of debt they took on. China took on the greatest pile of debt in world history in the shortest amount of time. Nothing like it has ever been seen before. They're now arguably the most indebted nation when you combine public + private debt, and it continues to expand. They have no way to reduce that debt, as the moment they take their foot off the debt gas their economy will crash, and yet their new debt is generating almost no growth return. They're bleeding reserves, they're overflowing with zombie corporations, their asset classes keep trying to implode and require constant large bailouts, and they still have nearly a billion poor people to deal with and half a billion pretend farmers without jobs. How could they be more of a disaster?