Ray Dalio warns China of 'lost decade' without debt reduction and monetary policy adjustment

Dalio on Xi’s ‘100-Year-Storm’ Prediction, What ‘Lost Decade’ Means for China https://t.co/RTejREwFo8 China never deleverages, and the CCP doesn't use monetary policy as a major tool, as their banks don't care much about interest rates.

China under Communism https://t.co/aQHaBOvG3f https://t.co/50t7M4qdiy

Michael Pettis@michaelxpettis

2 years ago

That's a false dichotomy. China's debt burden is reaching capacity limits and so it has no choice but to rein it in, in which case a slow reduction in debt will lead to a "lost decade", whereas a fast reduction in debt (very unlikely) will lead to a brutal contraction. https://t.co/DsJ77jAWlm