Why China’s Credit Growth is the World’s Largest Ponzi Scheme:
"In the US on Friday, the S&P500 surged to a new record high, presumably because there's not a lot to worry about. The Fed looks like maintaining its US$85 billion per month liquidity pump and the US government is without debt limit for a few more months at least. It's party time.
Oh, and let's not forget China's contribution to the latest price melt-up. On Friday afternoon it released better than expected economic growth numbers. The economy grew 7.8% in the three months to September 30, reversing a mid-year slowdown that had China's leadership completely freaked out.
So how did this reversal come about? By reverting to the old tried and true growth model of infrastructure lead investment. According to the Financial Times, fixed asset investment accounted for a whopping 56% of GDP growth in the third quarter:"
'via Blog this'
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