With US’s race to raise the debt ceiling and Euro’s woes, everybody seems to have forgotten that an even bigger player- China.

The problem with China is not so much that things look bad. Conversely, it’s because things look too good in China. Too many people are expecting China to grow and grow like there’s no tomorrow but guess what? That’s exactly what they Chinese government has been doing long before today.

Evidence? Check out these wonderful construction data. (link here) Construction stats for China are way off the charts and these are not in absolute terms but scaled for comparison with other already developed countries.

For an even more developed horror story about China (and Japan) check out Vitaly Katsenelson’s presentation here.