Friday, December 19, 2014
China is heading for a Crisis
I am leaning towards the view that China is heading for a crisis. The question is whether they can postpone the problems with fiscal or monetary problems for a year or so,’ Marc Faber told Citywire .
‘Maybe in China they can postpone a crisis for a while but when you look at the expansion of debt to GDP of 50% over the last couple of years, clearly that is not going to be sustainable for a long time.’
Faber estimates China to be growing at around 4% per annum, far below the 7.8% estimate of the Chinese authorities. If growth were to fall much below this, it would be more damaging to the global economy than the US government shutdown, he said.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.