A lot of people have been sounding the alarm about China’s credit situation. Many think tanks, academics, government officials, and even the (now outgoing) head of the People’s Bank of China, Zhou Xiaochuan, have warned of the risks of the rising debt burden in the Chiense economy. You see, since 2008, the country’s debt as a percentage of economic output has increased from around 160 percent, to around 280 percent at the end of 2016. (By comparison, the total debt in the U.S. as a percent of economic output is upwards of 300 percent.) And despite all the warnings, China’s debt-to-GDP ratio has continued to grow. So ... (full story)