The Dark Side of China's Economy

The article, written by Dee Woo, seems to come very close to an Austrian Business Cycle Theory analysis about the Chinese economy. I would only point out that Woo says China's central bank, the People's Bank of China, can not print China out of the coming collapse, even though it is currently trying. I would argue that the PBOC could technically do so, but it would require money printing at a rate of 30% plus. This would result in massive price inflation in China and likely civil unrest. This is what is keeping the PBOC from all out money printing.

Aside from this technical point, Woo's piece is very important in understanding the problems of both past aggressive PBOC money printing and the central planning that still impacts large parts of the Chinese economy. 

 

The full must read article is here.