After years of wasteful and failed infrastructure projects meant to fuel both economic growth, and crony capitalism, and funded significantly by bad debt, the economic slowdown in China has exposed a potential debt crisis that is close to exploding.
The great Chinese growth slowdown has been proceeding in stages for the past two years. The reason is simple. Much of China’s “growth” (about 25% of the total) has consisted of wasted infrastructure investment in ghost cities and white elephant transportation infrastructure.
With every passing day, a Chinese financial collapse draws closer. The rest of the world will not escape the consequences.