The Traderszone Network

Published in TZ Latest News 8 September, 2016 by The TZ Newswire Staff

40% Of GDP Per Year: Goldman Calculates The True Growth Rate Of China’s Debt

For a long time when it came to Chinese loan creation, analysts would only look at the broadest reported aggregate: the so-called Total Social Financing. And, for a long time, it was sufficient – TSF showed that in under a decade, China had created over $20 trillion in new loans, vastly more than all the “developed market” QE, the proceeds of which were used to kickstart growth after the 2009 global depression, to fund the biggest capital misallocation bubble the world has ever seen and create trillions in nonperforming loans.

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