China Seeing Record Inflation After Too Much Stimulus – Familiar?

By | November 2, 2009

A Bloomberg.com article stated that even a government-run economy can go awry when it pumps too much liquidity into the market under the guise of “stimulus”.

“China’s banking regulator plans to review debt levels at some real-estate developers on concern the companies’ borrowings are fueling excessive gains in property prices..”

More the concern is what happens when that stimulus is removed.  The U.S. economy faces the exact same threats.

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