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In 2005 the bogeyman was local government borrowing. In the late 1990s it was bad loans to SOEs that were going to collapse the Chinese banking system. You need
by austinz 13y ago
In 2005 the bogeyman was local government borrowing. In the late 1990s it was bad loans to SOEs that were going to collapse the Chinese banking system. You need to realize that the articles you are citing aren't based upon any sort of substantive analysis. They're based on pundits and consultancy reports basically taking the same arguments they've used in the past (scale, opacity, interlocking interests) and fitting them with new buzzwords, without taking into account why they were wrong in the past or how conditions now are different from before.
- jusben1369 13y agoLooks like that first bogeyman is back: Front page today: http://www.reuters.com/article/2013/12/30/us-china-economy-debt-idUSBRE9BT09M20131230 http://www.reuters.com/article/2013/12/30/us-china-economy-d... "(Reuters) - Calls for China to accelerate financial reforms grew louder on Monday after figures showed its indebted local governments owe nearly $3 trillion in a debt build-up that some analysts called alarming."
- austinz 13y agoAnd here's another set of 'analysts' from 2011 addressing the same problem from the opposite angle: http://www.economist.com/blogs/freeexchange/2011/06/sovereign-debt http://www.economist.com/blogs/freeexchange/2011/06/sovereig... Point being, you can find 'analysts' on every side of this particular argument, and unless you're an intellectually dishonest ideologue the best thing to do is to look at the facts and read their analyses critically.
- jusben1369 13y agoI thought you might like this too. Where China is addressed toward the end of this document: http://www.project-syndicate.org/commentary/george-soros-maps-the-terrain-of-a-global-economy-that-is-increasingly-shaped-by-china http://www.project-syndicate.org/commentary/george-soros-map...
- austinz 13y agoThanks, all articles you posted were interesting reads. I wonder what economists and historians 500 years from now will think of our current models...