summary
The previous chief economist of the International Monetary, Fund Ken Rogoff has told a slowdown in China is the greatest threat to the global economy. China is going through a big political revolution. This shows the slow down of the economy will be much more than the officials expects. So if we want to know to look at the part of the world that has a debt problem look at China. This caused because of the credit fuelled growth that won’t last forever. Last week, the Bank of the International Settlements, said that China’s credit to GDP “gap” stood at 30.1%. This shows that China’s economic boom was based on an unstable credit bubble.The global economy is pretty sharp landing already and China is becoming more of the problem.
opinion
No matter how we tackle to the negative interest rate, we cannot create an inflation. It is not a phenomenon only for Japan. From now on, it is believed that the global economy will be more and more threatened. China is a state which owns everything they can control, except for the worry of hard landing. So if the hard landing of China become realized, the damage to the economy will be unfathomable. Every state in the world is working for the economic down but there isn’t really a substitute for China. China should make every effort to stop the hard landing as fast as they could.