More on China

To go along with the previous post with George Friedman discussing China I offer this article: "China: the world's next economic crash". It is an opinion piece from The Christian Science Monitor. Some favored points:

"Yet however fast the economy is growing, China’s policies are unsustainable. First, the central government will be hard pressed to find the money to continue the spending spree. Budget deficits are going up fast, a constraint on additional expenditures. More important, Beijing’s regulators are concerned that the state banks, the primary source of stimulus funds, are overextending themselves and accumulating bad loans. "

and

"Finally, stimulus spending, as time goes on, becomes less effective in creating growth. The country already has one empty new city – Ordos in Inner Mongolia – and thousands of vacant facilities, especially shopping malls. New factories are underutilized."