Autohred by Jim Rickards via The Daily Reckoning,
China is not only one of the world’s largest debtors, it is one of the world’s largest creditors.
China uses debt not in the customary financial manner, but as a political tool to generate employment and maintain social stability. Likewise China uses loans and investment as a tool to advance its strategic interests. This may be good geopolitics in the short run, but it will be a disaster economically in the long run.
Just as Chinese state owned...