“… the country is “exponentially incurring indebtedness, perhaps creating debt about seven times faster than it has been producing nominal gross domestic product,” he added.
Chang recently interviewed fellow China expert and author Anne Stevenson-Yang, who told him that “the Chinese have long compared their country to a train whose last car is on fire.”
“That is China and debt,” Stevenson-Yang said. “If you add enough money to the system, you can keep refinancing the old debt, but you have to add money exponentially.”
With that in mind, Chang estimates that the total amount of debt accumulated by the Chinese Communist Party could be equal to 350% of the country’s gross domestic product.”
Comment: I dunno. I remember the people who long predicted the collapse of the Soviet economy. They were right. pl