MAR 6, 2018
For all the misinformation, questionable motives, and misguided meddling that have become the trademark of the US government, it is an exemplar of clarity and transparency compared to China.
The coming credit crisis in China is no secret.
China has $1 trillion or more in bad debts waiting to explode. These bad debts permeate the economy.
Some are incurred by Chinese provincial authorities trying to get around spending limitations imposed by Beijing. Some are straight commercial loans on bank balance sheets. Some are external dollar-denominated debts owed to foreign creditors.
The most dangerous type of debt involves a daisy chain of insolvent corporations buying debt from each other.
A shock yuan maxi-devaluation will be the shot heard round the world as it was in August and December 2015 (both times, U.S. stocks fell over 10% in a matter of weeks). The trade and currency wars are far from over.
Get ready for more volatility and drawdowns in U.S. stocks.
ORIGINAL SOURCE: China’s Coming Meltdown Will Rapidly Spread to U.S. at Daily Reckoning on 3/5/18