Monday, June 16, 2014

Gary Shilling on why he thinks China could be in for trouble


China could successfully increase economic growth, transition smoothly to a domestic-driven economy, control its rising militarism, reduce corruption without major disruptions, cease manipulating the yuan, lower the risks in shadow banks without clumsy bailouts, slowly let the air out of the real-estate bubble and deregulate interest rates. 

Given the history of other countries with similar problems, I wouldn’t bet on it.