Chinese banks have under the direction of the Communist Central committee have allocated and squandered huge amounts of capital by make loans to fuel a huge urban construction boom. Also the economically non productive armed forces have consumed huge amounts of capital with procurements. Unfortunately these projects have not been profitable, nor have they made a credible return on investment. In fact many remain empty and are deteriorating before they were ever occupied. The banks have papered over the loans or there would be massive defaults. If anything interferes with Chinese exports and the intake of foreign capital in the form of hard currency and investment, the Chinese economy would soon collapse. The only way for China to control this situation and avoid a catastrophic inevitable collapse is a carefully planned bankruptcy proceeding on a nationwide basis.
“The only way for China to control this situation and avoid a catastrophic inevitable collapse is a carefully planned bankruptcy proceeding on a nationwide basis.”
Or, a Hail Mary war.
««shudder»»