W(h)ither China? "The End Of Extrapolation"

On November 5, just as the 18th Chinese Congress was about to elect a leadership that would merely perpetuate the status quo, in "The Chinese Credit Bubble - Full Frontal" we presented a little known fact: namely that while China's sovereign debt is whatever the country wishes it to be (which due to the SOE basis of its banks is really a hybrid of sovereign and financial debt), one bubble that the country can not hide is that of its corporate debt level, which has hit the highest relative to GDP level in the enitre world. Ten days later Businessweek followed up with "Corporate China's Black Hole of Debt", which contained the following replica chart: And so the cat of China's real debt bubble is out of the bag and out for general consumption. Yet as promptly as it appeared, it was forgotten, as a desperate for any favorable economic news punditry has ignored the fact that economic data...