You don't hear a lot about this.
If you count all the non-performing sweet-heart loans given to CCP family members by state-owned "policy lenders"
(think China Railways), debt-ridden localities, & bloated, inefficient government factories that bleed money, China's
total debt is reckoned to be 75-77% of GDP
Excellent article in the WSJ.
http://online.wsj.com/article/SB10001424052748703883504576186252054344030.html?mod=WSJ_hp_us_mostpop_read
Unlike the US, the PRC government is liable for the debts of all its provinces & localities.
The U.S. federal government isn't legally liable for the debts of state and local governments, though there is persistent speculation that Washington would bail them out if they ran into trouble. If China's local governments can't pay their debts, the central government will either have to bail them out directly, or take losses in the state-owned banking system.
Contrary to the whining heard from the PRC leaders, Bernanke's QE2 didn't cause inflation in China.
It was already there waiting to explode.
And you ain't seen nuttin' yet.
