Real Growth and Relative Growth - The Problem in China

The problem in china was that you have two types of growth. You have what bajing has been calling high quality growth, which is really consumption, exports and business investment oriented towards consumption and exports. And then you have what i would call residual growth,. which is really investment in the property sector and a local government spending on intera structure. That created more and more of a debt problem for china. It was just a question of time before bajing decided to step in. I think the timing is less important than the mechanics that that that required, that eventually that would happen.