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2012-06-17 — theautomaticearth.org
China could be hit harder than just about any other country by this. It needs a high economic growth, of some 7% of more, or the engine will roll off the rails. And the powerful and wealthy party members need a high rate of price inflation to keep their kleptocratic scheme alive.
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The government can try to get the inflation rate up by pumping more money into the economy, but it's hard to see any reason why the Chinese would go out and borrow it. By and large, what they would want to spend, they already have in savings. They're not Americans yet, certainly not in that regard. More infrastructure investment? There are limits there too.
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