Phew..! What a relief.
The Chinese danger is no more.
As we all know by know, data released on Wednesday categorically confirmed that Chinese growth had defied recent tightening measures by monetary authorities and continued on track in the second quarter at 9.5 per cent (thus saving the world).
Understandably, markets reacted positively.
After all, whatever concerns might exist about Chinese debt levels are notably reduced in a scenario of continuing economic growth. If GDP is rising, debt simply isn’t the problem it would be otherwise. This is especially the case when the official finance ministry debt level is only about 17 per cent of GDP.
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