Gary Shilling Explains Why China Is Heading For A Hard Landing

Few countries are more important to the global economy than China. But its reputation as an unstoppable giant — as a country with an unending supply of cheap labour and limitless capacity for growth — masks some serious and worsening economic problems.

China’s labour force is ageing. Its consumers save too much and spend too little. Its political and economic policy tools remain crude. Its state bureaucracy seems likely to curb spending just as exports weaken, and thus risks deflation. As U.S. consumers retrench, and as the global commodity bubble begins to dissipate, these fundamental weaknesses will combine in a way that’s unlikely to end well for China — or for the rest of the world.

Read the full story at Bloomberg >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.