The country’s debt is rising dramatically, while growth in gross domestic product is slowing. It came not with a bang but a whimper. The January data from China finally confirmed that the country’s foreign-exchange reserves fell by $12.3 billion to $2.998 trillion, which compares with the all-time high of $3.993 trillion in June 2014 (see chart). A trillion here, a trillion there, and pretty soon we’re talking real money, right? What the official reserve data do not show is that massive borrowings outside China have accumulated over the past 15 years, bringing net reserves down to about $1.7 trillion, according to statistics prepared by Kynikos Associates. That much smaller reserve amount is not necessarily large enough to support the yuan exchange rate, particularly if foreign-exchange outflows accelerate again as the Chinese credit bubble has now burst, in my opinion. Read more @ http://www.marketwatch.com/story/chinas ... 2017-02-18Statistics: Posted by McFurd — Sun Feb 19, 2017 7:39 am
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