Don’t look now, but China is about to collapse (again)

ACCORDING to a report by Zero Hedge over the weekend, the Chinese economy is again on the point of collapse, thanks in large part to its steel industry’s drowning in debt and oversupply.

The argument, which on its face is backed by evidence and admittedly compelling, goes something like this: Between 2007 and the present, China’s debt has ballooned from about $7.4 trillion to nearly $30 trillion, roughly doubling its consolidated debt to GDP ratio from 158 percent to 300 percent.