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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 378.35+2.7%4:00 PM EST

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To: TobagoJack who wrote (84083)12/4/2011 11:40:49 AM
From: Hawkmoon1 Recommendation  Read Replies (2) of 217646
 
Smarter people than you, or I believe that China's in for some tough economic times due to mis-allocation of capital. Even Chinese economists are pointing at provincial "Greece's" within China.

zerohedge.com

The US, by the way, has the same problem in Illinois and California. I just think the problems for China are far greater. They can't draw upon their US denominated reserves without pressuring their peg to the USD. To do so would unleash even greater inflation..

The question is whether the bad debt on the books of Chinese banks exceeds the country's reserves.

But does this mean the end for China? Of course not. It will just alter it's path to progress.. and may create that "Jasmine revolution" the Chinese gov't so fears.

Hawk
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