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Vale Tudo
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Comments by "Vale Tudo" (@valetudo1569) on "China Still Not Collapsing | Bloomberg Businessweek" video.
I wouldn't call their problems "molehills". It isn't collapsing however, but much more likely is Japan-esque stagnation
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Anybody who says China is collapsing is watching clickbait nonsense....the system doesn't work like that. What's more likely to happen is Japan-like stagnation.
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@pikachus5m166 You're thinking too micro. Japan's problem was over-investment into nonproductive assets, as is China's. Initially the investment is productive, and you see massively positive ROI, but over time there are diminishing returns until they become nonproductive and the ROI becomes negative. This is China's problem... using debt to invest in infrastructure and real estate was initially a good thing, but this expired about 15 years or so (差不多), and then it became a negative return. The economy is unbalanced and it will rebalance, no question.....the question is how long will it take. Historically the two choices have been very quickly with high pain, like the US great depression, or drawn out stagnation like Japan... I personally believe it will be the ladder than the former.
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