Monday, May 15, 2017

David Goldman — There’s no China credit crunch

The whole China credit crunch story is hokum. There are regulatory measures to prevent brokers from circumventing margin rules, there is a regulatory crackdown on the dodgy Wealth Management Products market, and there is an effort to discourage local governments from using their own financing vehicles to promote their own projects–but credit is rolling out to the rest of the economy....
The other side of the story is, of course, that China is on the edge of a credit meltdown.

Meanwhile, Chinese growth continues apace.

Asia Times
There’s no China credit crunch
David Goldman

1 comment:

MRW said...

It should be kept in mind, though, that nominal GDP in China is growing by 11.8% a year. Wow. Those 21 or 25 countries meeting in Beijing this weekend will be taking note. Where do you think they're going to want to park their money? Clinton brought us the Great Recession. Obama's sanctions against Russia is going to cause the demise of the USD as the reserve currency. Will take another 10+ years but it's it's going to happen. At least, it will diminish our war chest.