FITCH: China’s Credit Bubble Is Unprecedented In Modern World History

“The credit-driven growth model is clearly falling apart. This could feed into a massive over-capacity problem, and potentially into a Japanese-style deflation,” said Charlene Chu, the agency’s senior director in Beijing.

“There is no transparency in the shadow banking system, and systemic risk is rising. We have no idea who the borrowers are, who the lenders are, and what the quality of assets is, and this undermines signalling,” she told The Daily Telegraph.

The world eonomy is built on fake money called credit.  Credit is a phantom, it does not exist.  It is only numbers on a computer.  You basically create money with it and eventually you will have created so much fake money that the economy will come crashing down aroun it.  You cant build a building with ghost steel and phantom bricks, it will fall down.  Thats basically what is happening here and if China does go down, expect them to struggle and fight it and usually when that happens, countries lash out.  (See world war 1 and world war 2). -Mort