Tim Adams reaffirms the China spillover effect from real estate and says we need to prepare for a negative shock. Total debt is $300 Trillion worldwide or 350% of global GDP.
Mr. Adams says that this debt growth (including $10 Trillion to US Debt over the last 7 years) is not sustainable. However, in the near term he expects large fiscal deficits to continue until “someday when the markets stop taking in treasuries.”