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Fitch Says China Credit Bubble Unprecedented In Modern World History

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The ratio of credit to GDP has jumped by 75 percentage points to 200pc of GDP, compared to roughly 40 points in the US over five years leading up to the subprime bubble, or in Japan before the Nikkei bubble burst in 1990. "This is beyond anything we have ever seen before in a large economy. We don't know how this will play out. The next six months will be crucial," she said.

What a shame, especially as the Japanese are relying on Chinese demand to pull them out of their own deflationary immiseration. Perhaps a George Osborne-type figure will emerge to help them reinflate their housing bubble? Better still, when Osborne gets thrown out of office in 2015 they can have him.

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"They have replicated the entire US commercial banking system in five years,"

I'm quite impressed by that.

Amazing how fast greed and stupidity can take over a system.

No one has ever escaped banking crisis's and China is clearly due one.


The whopping USD 624.61 billion debt owed by 36 provincial Chinese governments could destablise the country's banking sector as they struggled to repay the arrears, China's national auditors warned today.

China's National Audit Office (NAO) warned of the risks relating to some local governments' fast debt growth and the pressure to repay existing arrears as a four-month audit, by the office found liabilities of 3.85 trillion yuan (USD 624.61 billion) owed by 36 local governments.

Still debt is wealth and clearly China is taking the fast track to Utopia.

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  • 243 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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