Local Government Debt Pushing China's Crisis to a Whole New Level

Local government debt is now so unwieldy in China that some desperate district governments have turned to the private sector for help  to pay their employees. See Kyle Bass: China Could See ‘Full-Scale Recession’ Next Year The Chinese language magazine of state-run Xinhua news agency reported on Friday that the city of Ordos, in northern China’s Inner Mongolia, has accumulated almost six and a half times its annual revenue in debt—or 240 billion yuan ($39 billion). Some of the city’s districts have borrowed from businesses to meet salary obligations. More Signs of Strains in Local Economy The report adds to signs of strains…