{"id":11889,"date":"2015-09-05T14:02:19","date_gmt":"2015-09-05T19:02:19","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11889"},"modified":"2015-09-05T14:02:19","modified_gmt":"2015-09-05T19:02:19","slug":"dont-forget-chinas-other-spinning-plate-trillions-in-hidden-bad-debt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11889","title":{"rendered":"Don’t Forget China’s “Other” Spinning Plate: Trillions In Hidden Bad Debt"},"content":{"rendered":"

Don’t Forget China’s “Other” Spinning Plate: Trillions In Hidden Bad Debt<\/a><\/h3>\n

To be sure, there\u2019s every reason to devote nearly incessant media coverage to China\u2019s bursting stock market bubble and currency devaluation.<\/p>\n

The collapse of the margin fueled equity mania is truly a sight to behold and it\u2019s made all the more entertaining (and tragic) by the fact that it represents the inevitable consequence of allowing millions of poorly educated Chinese to deploy massive amounts of leverage on the way to driving a world-beating rally that, at its height, saw day traders doing things like bidding a recently-public umbrella manufacturer up 2,700%.<\/p>\n

The entertainment value has been heightened by what at this point has to be some kind of inside baseball competition among media outlets to capture the most hilarious picture of befuddled Chinese traders with their hands on their faces and\/or heads with a board full of crashing stock prices visible in the background. Meanwhile, the world has recoiled in horror at China\u2019s crackdown on the media and anyone accused of \u201cmaliciously\u201d attempting to exacerbate the sell-off by engaging in what Beijing claims are all manner of \u201csubversive\u201d activities such as using the \u201cwrong\u201d words to describe the debacle and, well, selling stocks. Finally, China\u2019s plunge protection has been widely criticized for, as we put it, \u201cstraying outside the bounds of manipulated market decorum.\u201d<\/p>\n

And then there\u2019s the yuan devaluation that, as recent commentary out of the G20 makes abundantly clear, is another example of a situation where China will inexplicably be held to a higher standard than everyone else.That is, when China moves to support its export-driven economy it\u2019s \u201ccompetitive devaluation\u201d, but when the ECB prints \u20ac1.1 trillion, it\u2019s \u201cstimulus.\u201d<\/strong><\/p>\n

 <\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Don’t Forget China’s “Other” Spinning Plate: Trillions In Hidden Bad Debt To be sure, there\u2019s every reason to devote nearly incessant media coverage to China\u2019s bursting stock market bubble and currency devaluation. The collapse of the margin fueled equity mania is truly a sight to behold and it\u2019s made all the more entertaining (and tragic) […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1719,8386,124,130,8725,951,1099,200,233,2022,344,8387,6911,6876,2731,4114,1031,4318],"class_list":["post-11889","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bond","tag-borrowing-costs","tag-central-banks","tag-china","tag-competitive-devaluation","tag-currency","tag-currency-devaluation","tag-default","tag-ecb","tag-fx","tag-g20","tag-latam","tag-rbs","tag-shadow-banking","tag-stock-market-crash","tag-transparency","tag-yuan","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11889"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11889\/revisions"}],"predecessor-version":[{"id":11890,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11889\/revisions\/11890"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}