Bank lending in China today is higher then in the United States and its a smaller economy. We also have a credit bubble in China and their dilemma is if they would do the right thing, the economy would go into recession. So, they will postpone it like every other government will do and eventually you have a bursting of the bubble.
Now, will it happen in 3 months, 6 months, 9 months, 3 years? But that is the biggest threat to the global economy.
in Bloomberg Radio
Related: iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI) , PowerShares Gld Drg Haltr USX China(ETF) (NYSE:PGJ), Morgan Stanley China A Share Fund, Inc. (NYSE:CAF)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
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