Bad debts in the Chinese banking system are ten times higher than officially admitted, and rescue costs could reach a third of GDP within two years if the authorities let the crisis fester, Fitch Ratings has warned.
way to deal with assets in the over-priced housing sector would be to implement a nationwide Land Value Tax. This would lower prices while channeling
the rent into the communities. It would get ghost city inventories moving &
allow untaxing of incomes & offset inflationary pressures when China inevitably
starts printing money to escape its debt burden.
China will continue exporting its debt via foreign infrastructure projects. A worldwide resource tax would force more efficient use of dwindling resources & foster new resource-saving industries.
It's manageable but will require unprecedented levels of non-ideological practicality & global coordination.