According to the experts, China is still taking on record debt to fuel the national recovery and that has many economists worried since they say it’s a trend that can’t last.
For the last quarter the nation grew almost 9% and that’s a fast pace. Many economists are predicting that the pace will increase over the rest of the year. Beijing’s economic stimulus has resulted in good profits for the state run agencies.
While there are a group of experts that point to the Chinese example as as something the rest of the world can follow, there are a growing number of experts that feel this is really nothing more than a bubble economy.
These experts point to the fact that the American situation followed basically the same path. They like to point out that the victims when this bubble bursts will be different than in the North American model. There are some interesting statistics to fuel this debate.
In the first nine months of this year, the Chinese have shoveled over a trillion dollars of new loans into their economy.