Around the world on Monday as markets focused on the severe troubles of property developer China Evergrande Group.
A Chinese debt crisis will - either now or in the near future - bring down China's economy, and the U.S. must delink from that country to reduce the damage to itself.
Before the disease struck in late 2019, China had been incurring almost seven times more debt than it was producing gross domestic product.
"China's official debt-to-GDP ratio has soared by nearly 45 percentage points in the past five years, leaving it with among the highest debt ratios for any developing country in history," reports.
China's leverage is at least three times that of the U.S. prior to the 2008 crisis.
ADVERTISEMENT. China's fundamental problem is that there is too much debt in too many places.
So China will have to face the music sometime, whether or not it has a "Lehman Moment," and the U.S. can protect itself only by delinking its economy and markets from China's as fast as it can.
https://thehill.com/opinion/finance/573397-evergrandes-debt-crisis-time-to-ditch-china
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