Tuesday, November 15, 2011

Is there an IMF warning on China?

Though various headlines today suggest there is an IMF warning on the Chinese economy, regrettably the IMF has chosen to whitewash the prospects for the Chinese economy.

If you read the report, you will see that the IMF is sanguine about the Chinese economy even if its growth rate falls to 4%.

This is simply idiotic.

At present, the IMF does not see any real estate bubble, any over-investment in infrastrucure, nothing to worry about in the bad loans in the banking sector....

All the IMF wants China to do, in order to avoid whatever little danger it sees even in the case of the most extreme imaginable financial crisis scenario, is to simply liberalize its financial sector - and, presto, no one needs to worry about any problems in the Chinese economy any more!

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