One prediction made more than any other over the past couple of decades is that China's miraculous economy is headed for a fall.
China bears have pointed to a long list of disasters-in-the-making: questionable economic statistics, skyrocketing real-estate prices, ghost cities, corruption, pollution, civil unrest and growing debt.
Yet, despite all of these concerns, China's economic machine just keeps chugging along.
But this time it's going to be different!, says an analyst from Fitch. This time, China really is screwed.
According to Ambrose Evans-Pritchard of the Telegraph, Fitch analyst Charlene Chu has concluded that China's growth is fueled by a credit bubble that is unlike anything the modern world has ever seen. This debt bubble is leading to massive overbuilding, Chu says. And when it finally bursts, as debt bubbles always do, China will be looking at a Japan-style depression and deflation.
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