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More stimulus isn't the answer to China problems

Driven by the vast shadow-banking sector (which contains at least US$6.5 trillion of debt) and a construction boom fuelled by local officials, China's debt buildup accounted for a third of all borrowing globally since 2007.

FEW buzz phrases scare economists more than "new paradigm". If such things existed, Japan would still dominate the world economy, risk would have been eliminated from Wall Street, and the euro would have spread boundless prosperity from Berlin to Athens.   So why do so many market observers...

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