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@economics-that-works

He is describing the conditions of a debt deflation spiral for China’s provinces. I don’t think it’s clear how the state can paper over this bubble, although the US and EU are not in better shape (I’ve put a few thoughts to pixels on it). The US economy was powered by similar dynamics by subsidizing home loans and suburban expansion. That Ponzi scheme ran out of steam in the 70s, and every housing crises since has been papered over with more money to float it.
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