China’s debt woes

December 6, 2011 | By | Reply More

In a detailed article at Huffpo, Janet Tavakoli argues that China has an economic problem too, that it is caused by fraud and mismanagement, and that China’s bubble will be popping. She also offers a way to determine when China’s bubble will be bursting:

If the rate of change of public officials fleeing the country, df/dt > x, where x is yet to be defined, or the acceleration in fleers, d2f/dt2 > y, where y has yet to be defined, or the rate of change of the average amount of loot dl/dt > z, where z is yet to be defined, then conditions of the Chanos Equilibrium have been violated and destabilization will occur.

Stated differently, when you see the absolute amount of embezzled wealth fleeing the country suddenly increase, or when you see a sudden increase in the absolute number of Chinese officials leaving the country on “holiday,” or when you see an acceleration in the number of officials leaving the country in a stealthier way, you’ll know China is sinking.

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Category: Current Events, Education

About the Author ()

Erich Vieth is an attorney focusing on consumer law litigation and appellate practice. He is also a working musician and a writer, having founded Dangerous Intersection in 2006. Erich lives in the Shaw Neighborhood of St. Louis, Missouri, where he lives half-time with his two extraordinary daughters.

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