The Politics of Trade in the US

GDP isn't a measure of wealth or debt service capacity it's a measure of economic activity now if you invest in a airport that gets no airplanes that shows up as an increase in GDP. In the US what would end up happening is you would have to write that investment down to zero and so would reduce the value added component of GDP. You would eliminate that bad investment from GDP in China you don't do thatYou're able to roll over the bad debt forever effectively because of government guarantees. So GDP is significantly overstated by the amount of bad investment I shouldn't say GDP is overstated I should say the real wealth.