The world has become aware that China is experiencing its worst economic crisis in many decades.

Many people have begun to wonder if China is “turning Japanese”, meaning that China’s economy may stop growing altogether just as Japan’s economy did after the Great Japanese Credit Bubble popped in 1990.

The new Macro Watch video explains why China might not be that lucky.

One of the recurring themes of Macro Watch is that, in the 21st Century, Credit Growth Drives Economic Growth.

Another is that Capitalism evolved into Creditism when Dollars ceased to be backed by Gold five decades ago.

In China’s case, it is more accurate to say that Communism evolved into Creditism.

This video examines trends in credit growth in China and it shows that Creditism in China is quickly running out of steam.

Creditism requires Credit Growth to survive.

If Credit begins to contract in China, that country will soon learn that there are far worse outcomes than experiencing no economic growth.

Macro Watch subscribers can log in and watch this video now. It’s 15 minutes long and contains 49 slides that can be downloaded.

This is the second in a series on the grave challenges now bringing Chinese economic growth to a standstill.

If you have not yet subscribed to Macro Watch and would like to, click on the following link below for a special 50% subscription discount, hit the Sign Up Now tab and, when prompted, use the coupon code: YT50

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