I have to respectfully disagree. One form of Chinese debt is being destroyed – local government shadow loans – and replaced by another form of debt. A net zero fiscal event and certainly not “money printing”.

There’s also a rapid deceleration in overall financing throughout the Chinese system. Bank lending has fallen off a cliff as example. This process of deleveraging is the primary reason why the economy remains weak and deflation is all over the headlines.

Do appreciate the comment though. Thank you.