Chinese Continuation

In 2016, China is aiming for GDP growth of 6.5% to 6.7%. While that’s way too high, China will make it happen. That means increasing the money supply and lending by a dangerously high 13% each, having a budget deficit of 3%, up from 2.4% last year, and funneling more credit to bloated state-run-enterprises. With so much stimulus, China easily muddles through and avoids an economic “hard landing” in 2016.