So when will the Chinese debt bubble burst?
I've yammered on about this for a long long time. Highlighting empty cities to nowhere, excessive debt buildup, etc. Obviously the Chinese government's ability to extend this bubble is greater than my FinTwit credibility.
Are we hitting another decision point? Will the next US recession finally detonate the bubble? Honestly I don't know, but now ever Peter Zeihan is commenting on this.
https://www.youtube.com/watch?v=PVMlEiewyT4
The more China blows the debt bubble the larger the explosion when it pops and right now they are working on exceeding the Japanese bubble from decades ago.
Source: Federal Reserve
No one wants to be blamed for ending the party but eventually it does. I can't tell you when it will go off, but be careful when it does.
