David Stockman Warns "Don't Forget About The Red Swan" | Zero Hedge
"...during the last 19 months the Red Ponzi propagated a false upturn in the global economy that is already decisively reversing. This comes at the same time that central banks of the major developed world economies are finally bringing their printing presses to a halt... the morning-after toll will be especially severe and disruptive - this used to be called a 'depression'..."
Half of the world's GDP growth since the 2008 crisis has been in China, and that, in turn, was purchased by the greatest credit eruption in recorded history.
As China's nominal GDP was more than doubling from $4.6 trillion in 2008 to $11.2 trillion in 2016, its national leverage ratio soared from 175% of GDP to 300% in less than a decade.
There's reason to seriously doubt that Beijing can bring the Red Ponzi to a soft landing. It cannot and will not permit the nation's debt load to quadruple again during the next eight years, meaning that China's days as the world's ultimate stimulus machine are over.
