The Macroeconomics of Chinese kleptocracy

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John Hemp­ton from Bronte Cap­i­tal expands on the theme of  sys­temic chal­lenges cur­rent­ly fac­ing the Chi­nese econ­o­my that we touched on last week with The End of the Com­mu­nist Dynasty

The Macro­eco­nom­ics of Chi­nese klep­toc­ra­cy Chi­na is a klep­toc­ra­cy of a scale nev­er seen before in human his­to­ry. This post aims to explain how  this wave of theft is financed, what makes it sus­tain­able and what will make it fail. There are sev­er­al Chi­na experts I have chat­ted with – and many of the ideas are not orig­i­nal. The syn­the­sis how­ev­er is mine. Some sources do not want to be quot­ed.