China must wean itself off debt addiction if it is to avoid financial calamity, warns IMF chief

China's population is increasingly consumer-basedChina is edging towards “financial calamity” and must wean itself off its debt addiction and reform if it is to avoid a crisis, the International Monetary Fund has warned.
Markus Rodlauer, deputy director of the IMF’s Asia-Pacific department, said the world’s second largest economy was approaching a tipping point where its rapidly growing financial sector and surge in shadow credit could undermine the state’s ability to contain the fallout from a crash.
“The level of financial and corporate debt and the complexity of the financial system and rapid growth in shadow banking is on an unsustainable path,” he said….. [read more]
lhwm notes: How strange whatever happened to the AIIB?  China launches new AIIB development bank as power balance shifts

2 thoughts on “China must wean itself off debt addiction if it is to avoid financial calamity, warns IMF chief

  1. Matthew 6:9-13King James Version (KJV)
    9 After this manner therefore pray ye: Our Father which art in heaven, Hallowed be thy name.
    10 Thy kingdom come, Thy will be done in earth, as it is in heaven.
    11 Give us this day our daily bread.
    12 And forgive us our debts, as we forgive our debtors.
    13 And lead us not into temptation, but deliver us from evil: For thine is the kingdom, and the power, and the glory, for ever. Amen.
    When have people forgiven the debts of others? That is God’s will on earth as it is in heaven.

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