China looks as if it has caught the European flu.
Debt levels in China have spiralled to between 150-200% of GDP (although official figures from China have always to be treated with some caution), which is similar to the situation in Europes debt-laden economies.
There are no signs yet that China's govt has decided to apply the brakes by removing stimulus or by monetary measures. If they don't tackle the problem soon they will face similar troubles to Europe.
What that would mean for us is that sooner or later our commodity prices - iron ore, coal & other minerals - would fall. At the same time, Asian banks and big investors could seek to transfer more wealth into our financial & other sectors, which would keep our dollar at a high level.
Together these effects would be devastating for our export industries and the government revenue.

hadrian_now wrote on Mar 26^th, 2013 at 2:55pm:

China looks as if it has caught the European flu. Debt levels in China have spiralled to between 150-200% of GDP (although official figures from China have always to be treated with some caution), which is similar to the situation in Europes debt-laden economies. There are no signs yet that China's govt has decided to apply the brakes by removing stimulus or by monetary measures. If they don't tackle the problem soon they will face similar troubles to Europe. What that would mean for us is that sooner or later our commodity prices - iron ore, coal & other minerals - would fall. At the same time, Asian banks and big investors could seek to transfer more wealth into our financial & other sectors, which would keep our dollar at a high level. Together these effects would be devastating for our export industries and the government revenue.

China has a solution for everything. Their government would never allow debt to be a problem. All they have to do is pass laws that shift the problem to another sector of Chinese society, laws that damage or lower the dignity or quality of life of certain groups of people and then tell them that they're doing this for their country. The government will tell these people that their "sacrifice" was worth it, and praise them for "doing a service for their country." Such laws would cause an uproar in the West, but in China, anything is justifiable if your country needs it, because in China the country is more important than the individual.

I believe this is how China solves most of its problems. Don't be surprised if after hearing on the Chinese media that it has solved the "debt problem" that the level of harmful chemicals in the water supply starts increasing or if the amount of rubbish getting illegally dumped in your local neighbourhood starts increasing. Don't be surprised if thousands of people lose their jobs in the local factory or if all of a sudden wages drop or unemployment soars. China's problems are constantly shape-shifting into something else as part of the government's effort to hide them.

Don't underestimate the ability of the Chinese government to solve its problems. Don't underestimate the power of the dark side. Don't allow yourself to be "turned." Your thoughts will betray you. Don't let the Sith Lord get to you.