"That does create jobs and growth in the short run, but if you can’t use it, you’ve wasted it," Rickards said.
China’s leadership, worried about a downturn in exports, wants domestic consumption to take on an increasingly important role in the economy. There is talk of floating the yuan and letting market forces shape its state-owned companies.
But as the country outgrows the planned economy, there are signs it is having trouble managing credit and that it's banks may be in trouble.
- Source, CBC:
