After the 2008 global collapse, China replaced the US as the engine of global growth. With unprecedented injections of money and loosening of credit, China made sure its economic ascent would continue. Now, the consequences are beginning to surface.

Its overheated property market remained immune to government efforts to contain it in 2010.  Housing prices are still rising. The Chinese real estate bubble  is even larger than the US bubble and its collapse will be even more destructive.

China's inability to slow its real estate bubble will be repeated in its inability to control inflation. China's central government has grown  overconfident in its ability to manage its economy. With inflation now growing far faster than it will admit, China will soon be humbled as prices move higher despite government measures.

 Loosening credit is easy. Containing the consequences is not. China has the longest history with inflation in the world and they are about to extend their record.

Good luck,

Darryl Robert Schoon

www.survivethecrisis.com

www.drschoon.com