China’s addiction to debt traces back to the global financial crisis in 2008. Even after the worst of the crisis passed, China continued to rely on debt to fund growth. The country’s debt has recently been increasing by an amount equal to about 15 percent of the country’s output each year, which has kept the economy expanding between 6.5 percent and 7 percent. Advertisement Continue reading the main storyThe borrowing binge of late has also been propelled by murky investments with potentially big risks. Advertisement Continue reading the main storyForesea is an extreme example of the manic speculation that hangs over the entire system.

Source: New York Times May 24, 2017 20:03 UTC