From Ambrose Evans-Pritchard, here, who points out there is a dwindling supply of growth to steal from the future:
China has already pushed credit to 200pc of GDP. It cannot repeat the trick. ...
As for China's bluster, it is chutzpah and self-delusion. We all agree that the US needs to "cure its addiction to debts", but so will China soon.
China buys US debt in order to recycle $200bn a quarter in foreign reserves, hold down the yuan, and continue its mercantilist export strategy. If China had not distorted world trade in this fashion, the US would not be in such a mess.
