The head of China’s sovereign wealth fund noted in 2009: “both China and America are addressing bubbles by creating more bubbles”.
He’s right …
Global credit excess is worse than before the 2008 crash.
Well, the world’s most prestigious financial agency – the central banks’ central bank, called the Bank of International Settlements or “BIS” – has long criticized the Fed and other central banks for blowing bubbles. The World Bank and top economists agree. So do many others.
As such, it was easy for us to predict a crash in China when the bubble collapses.
We argued in 2009 that China’s period of easy credit was analogous to America’s monetary easing starting in 2001 … and Rome’s in 11 B.C.
We noted in 2009 and against in 2011 that China is suffering from a lot of the same malaises as the American economy, including corruption, crony capitalism, and failure to disclose bad debt.
In 2010, we asked “When Will China’s Bubble Burst?”
China’s $23 Trillion Dollar Credit Bubble Is Bursting
Source Zero Hedge