China's Economic Challenge

I don't think they really have any other options. What's happening in China right now is real interest rates have increased. The central government has to take that private sector leverage on its own balance sheet through fiscal expenditures. I'm not sure to what extent the households, even if they get relief are willing to buy their fourth and fifth condo. But this is a very serious problem for China. You know, these kind of adventures with Russia or Taiwan, they are really more of a luxury right now avoiding secular stagnation and balance sheet recession. That's where China is right now.