ML-Implode News - As growth slows, China is digging itself an even bigger hole (+ CHINA ROUND-UP)

China has forgotten the first law of holes. It's in one, but it's still digging... Despite [its slowing GDP] growth ... new borrowing has climbed to its highest level in six months. It's enough that China now has more total debt - including the government, households and corporations - relative to the size of its economy than we do to ours.
Now wait a minute. Why is China racking up so much debt? Well, the simple story is that Beijing has tried to replace all the foreign customers it lost during the financial crisis with even more spending on roads, buildings and other infrastructure until Chinese customers are ready to take their place.... This will not end well, and the government knows it. You just can't add this much debt this fast without a lot of it going bad. And it looks like it's already starting to.

Relevant:

As growth slows, China is digging itself an even bigger hole (+ CHINA ROUND-UP)