Similarly, the expansion of debt [in China] is also proving less effective in generating GDP growth. From 2000 to 2008, it required $1.5 in debt to produce $1 of GDP. By contrast, credit efficiency in the US became poor right before our bubble imploded, with it taking $4 of credit to produce $1 of GDP. China now is even less efficient than the US in 2008, with it now taking $7 of credit to yield $1 of GDP increase.
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| — | Yves Smith in Is China’s Capital Spending Bubble About to Deflate? |
