So, China's local governments have debt that pushes China's debt load up to our levels. And other Chinese issues could make this a problem this decade.
I've seen this story a couple times in the last week but didn't comment because I didn't know enough to say if it was really a problem. After all, our states and local governments can issue bonds to finance construction projects and I assume the official statistics of our debt don't count that. But perhaps I'm wrong.
But the article I read says that this is a ticking time bomb for China. Some repayment problems could arise in the next two years leading to central government intervention, and set the stage for worse problems.
And if China needs to sell a huge chunk of our debt that they hold to make good on the local debts, how does that affect us?
