>As for China, no deficit problem there despite the boom in development. You are giving them too much optimism. The state budget is healthy only because the na

>As for China, no deficit problem there despite the boom in development. You are giving them too much optimism. The state budget is healthy only because the national government collect a disproportionate amount of tax revenue* and leave the local governments to fend for themselves, and indeed many of them have been funded entirely on debt for years now the property boom have mostly died down and took land grant money with it. *Last year 25 provinces ended up receiving more transfer payments than the taxes collected, in other words only the remaining 9 costal provinces are (sort of) without deficit. With a looming demographic crash China is not any better off than the US.