China's Catastrophic Deleveraging Has Begun
what goes up must come down
The main drivers of China's debt financing,China's state-owned banks, are starving for cash. According to Citigroup estimates, in 2011 seven of the biggest Chinese banks raised 323.8 billion renminbi ($51.4 billion) of new fund. Several financial firms are expected to raise another $17.7 billion in the next few months, with China’s fifth-biggest lender, the Bank of Communications, accounting for $9 billion. The unprecedented lending binge encouraged by the central government,increasingly rigorous requirement of regulatory capital and excruciating maintenance of excessive dividend payouts have rendered the most-profitable banks in the world--Chinese banks--in a rather precarious position.
http://www.businessinsider.com/chinas-end-gamethe-dark-side-of-a-great-deleveraging-2012-7#ixzz20jU75uPD
The World will be in a Great Depression which will predispose it to WWIII possibilities
