More Evidence China’s Top-Down Statist Economic Regime May be Failing…

ATLANTA—  In an interesting twist, the Telegraph reports that the Royal Bank of Scotland has advised its clients to take out protection against the risk of a sovereign default by China as one of its top trades for 2011.  This may sound absolutely crazy, given that China has been leading the global recovery and averaging around 9 percent growth for several decades.  While RBS does not believe a default will occur, they have been closely observing the rise in inflation in China and they believe the leadership of China will have a very difficult time countering it, without creating a “hard-landing” for the Chinese economy in the next several years.  Read more of this post