Not a day goes by without talk and commentary about China’s debt situation. Yesterday, it was Société Générale’s Yao Wei sounding the alarm bell, this time it is Paul Krake from View From the Peak investment research.
“We had a false start in a rebound in Chinese economic in the first
quarter of the year… The Chinese leadership is very concerned about the
current debt dynamics in China,” he said in an interview with RealVisionTV.
Activity rebounded a bit during the first quarter, thanks to a record amount of new debt,
but this stimulus is already wearing off again and Krake thinks the
Chinese regime won’t engage in continuous stimulus and debt expansion.
“Any thoughts or hopes of a large credit-fueled stimulus from Beijing
is barking up the wrong tree. As a result, aggregate demand globally is
going to be poor.”
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