China's Economic Train Wreck?

[bobman0330]

It seems very possible. Another aspect to consider: A lot of power is in the hands of local and regional bureaucrats, whose main objective is to look good in the eyes of their superiors. It's probably not a good career move to encourage your region to grow at a sustainable 7% annually when everyone else is cranking out an unsustainable 11%. Maybe things will burn out in 5 years, but that bureaucrat hopes to be long gone. Read up on, if you're not already familiar with, public choice theory. I suspect it has a lot of application in China.