My Comment: How does China artificially stimulate their economy with a lot more debt when their debt/GDP is already 300% ? Got Gold ?
Excerpts:
Alas, with China's debt at record highs, over 300% of GDP...
... all those hoping for a quick resolution to the biggest problem plaguing China's economy and markets, namely the lack of a "bazooka" in new debt/loan creation which can backstop the imploding property sector, kickstart the mobirbund economy and spark a market rally, there is little hope that anything can change.
Which is a problem because in the meantime, China's key economic indicators continue to deteriorate as the (now 2nd most populous after India) country slowly slides into the toxic spiral of Japanifying deflation.
for China - which still has a young, vibrant and increasingly angry population - this is not an option as the coming tidal wave of angry protests and strikes, could easily result in the one thing the Chinese Communist Party dreads the most, a revolution.
But that's precisely what China will get unless it figures out a way to bazooka its way to at least a few more years of growth.
"the need for more central government leveraging is becoming a consensus among policy advisors, investor questions have concentrated on the size, speed, and mix of stimulus required to reflate China's economy." The answer: a lot, and right now... unless Beijing is willing to risk everything.