China’s Growth is 100% Debt Driven

China Debt Mountain
100% Debt Driven Growth
Bloomberg via Mishtalk

China leads the world in economic growth but that growth is 100% debt-driven. China’s recent $10 trillion in growth comes from $10 trillion in additional debt.

… The instability of China’s credit-fueled, investment-focused growth strategy is—without a doubt—one of the greatest systemic risks facing the global economy according to Hedgeye Financials analyst Jonathan Casteleyn.

… __ Source

“The Chinese system has been propped up by debt-fueled growth,” Casteleyn explains in the video above from The Macro Show. “Eventually this very substantial contributor to GDP could start a banking crisis at some point.” __ Source

China’s non-performing loans (NPLs) are eroding the foundations of the national economy — and every other economy that China touches. Most of these NPLs relate to state-owned enterprises, which are too closely tied to communist party officials’ personal finances for China to allow the zombie industries to die, as they should have done years ago.

China is Not the Only Nation With Debt Problems

Many nations of Europe, the Anglosphere, and free Asia are likewise dealing with problems of rising debt, although not with the same degree of toxic undertow that plagues China’s Communist Party system — dogged by corruption and ideological dysfunction as it is. China is being overwhelmed by toxicity of its air, water, soil, food, and other products. It is growing old before getting its economic act together. Its economy is largely a Potemkin bubble, and most of what is real consists of assets that were stolen, pirated, or taken from naive foreign investors who never expected to be stabbed in the back.

In the US, Obama’s mindless debt binge is just now being slowly turned back by the new administration. All in all, the Trump administration is doing a magnificent job in gradually turning back much of the US governmental rot that has set in over the past 28 years or so.

US Millenial Snowflakes Love Trump’s Tax Plan!

Young leftists love the Trump plan — if it is presented as Bernie Sanders’ plan. 😉

Clearly these young snowflakes have no deep foundations of knowledge. Like most modern consumers of mainstream propaganda, they judge everything by surface appearances alone.

It should be obvious that if not for the propaganda classes and the classes of brainless sheep who listen to them, Trump’s reforms could move the US back toward constitutional government far more quickly.

More on China’s ongoing crisis:

China’s GDP fiasco

Fast forward the video to about 5 minutes for clearer audio:

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2 Responses to China’s Growth is 100% Debt Driven

  1. John Q Public says:

    Good God, these people just say whatever makes them hip with the cool people!

  2. Jerry OReilly says:

    Good article….. and yes, the debt level in china as well as the rest of the world is NOT sustainable….

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