NakedCapitalism.com argues here that China’s economic slowdown will continue and produce a financial crisis that will have global effects, and we’ll likely feel some pain too in North America.
As with the United States and its financial crisis in 2008, the problem isn’t Federal but private debt, which, ramping up, usually presages a debt crisis.
To shore up its economy, China may start spending a lot more on its military, which is worrisome. There’s not much else it can do as for years China’s booming industry has been producing overcapacity it won’t be able to absorb for years.
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