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	<title>China Financial Markets &#187; Balance sheets</title>
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	<description>Michael Pettis&#039; finance blog...</description>
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		<title>The World Bank proposes tough medicine for China</title>
		<link>http://www.mpettis.com/2012/03/10/the-world-bank-proposes-tough-medicine-for-china/</link>
		<comments>http://www.mpettis.com/2012/03/10/the-world-bank-proposes-tough-medicine-for-china/#comments</comments>
		<pubDate>Sat, 10 Mar 2012 06:57:09 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Balance sheets]]></category>

		<guid isPermaLink="false">http://www.mpettis.com/?p=1570</guid>
		<description><![CDATA[Contrary to some recent research reports cited in the press I do not think we have seen any substantial rebalancing of the economy towards consumption in 2011.  This is largely an argument being made by economists who did not see why Chinese consumption repression was all along at the heart of the growth model.  These [...]]]></description>
		<wfw:commentRss>http://www.mpettis.com/2012/03/10/the-world-bank-proposes-tough-medicine-for-china/feed/</wfw:commentRss>
		<slash:comments>61</slash:comments>
		</item>
		<item>
		<title>Incentives and debt</title>
		<link>http://www.mpettis.com/2011/07/07/incentives-and-debt/</link>
		<comments>http://www.mpettis.com/2011/07/07/incentives-and-debt/#comments</comments>
		<pubDate>Thu, 07 Jul 2011 11:06:15 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Balance sheets]]></category>

		<guid isPermaLink="false">http://mpettis.com/?p=1526</guid>
		<description><![CDATA[I want to start this newsletter with a story that may be fairly illustrative of one of the problems within the Chinese economy that I worry about.  There was an article in last Sunday’s edition of the South China Morning Post about a real estate project in Guangdong.  (WC Fields’ was supposed to have once [...]]]></description>
		<wfw:commentRss>http://www.mpettis.com/2011/07/07/incentives-and-debt/feed/</wfw:commentRss>
		<slash:comments>48</slash:comments>
		</item>
		<item>
		<title>Trade and the RMB</title>
		<link>http://www.mpettis.com/2011/05/31/trade-and-the-rmb/</link>
		<comments>http://www.mpettis.com/2011/05/31/trade-and-the-rmb/#comments</comments>
		<pubDate>Wed, 01 Jun 2011 06:13:41 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Balance sheets]]></category>
		<category><![CDATA[Reserve currency]]></category>

		<guid isPermaLink="false">http://mpettis.com/?p=1505</guid>
		<description><![CDATA[Most of last week&#8217;s newsletter was dedicated to a discussion on Chinese debt, specifically on how we should think about the Chinese debt structure and on when would we know how much debt is too much debt.  Every earlier example of the investment-driven growth model that China follows ran into the problem of an unsustainable [...]]]></description>
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		<slash:comments>23</slash:comments>
		</item>
		<item>
		<title>Looking for debt</title>
		<link>http://www.mpettis.com/2011/05/25/looking-for-debt/</link>
		<comments>http://www.mpettis.com/2011/05/25/looking-for-debt/#comments</comments>
		<pubDate>Thu, 26 May 2011 02:40:45 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Balance sheets]]></category>
		<category><![CDATA[NPLs]]></category>

		<guid isPermaLink="false">http://mpettis.com/?p=1498</guid>
		<description><![CDATA[Quite a lot of data came in last week as I was recovering from the jet lag generated by last week’s trip to the US, and for good measure, the PBoC then raised minimum reserve requirements Thursday evening.  I discuss the numbers extensively in my newsletter, and of course there has been a lot of [...]]]></description>
		<wfw:commentRss>http://www.mpettis.com/2011/05/25/looking-for-debt/feed/</wfw:commentRss>
		<slash:comments>27</slash:comments>
		</item>
		<item>
		<title>Do sovereign debt ratios matter?</title>
		<link>http://www.mpettis.com/2010/07/20/do-sovereign-debt-ratios-matter/</link>
		<comments>http://www.mpettis.com/2010/07/20/do-sovereign-debt-ratios-matter/#comments</comments>
		<pubDate>Tue, 20 Jul 2010 08:59:34 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Balance sheets]]></category>
		<category><![CDATA[Banks]]></category>
		<category><![CDATA[Financial crisis]]></category>
		<category><![CDATA[History]]></category>

		<guid isPermaLink="false">http://mpettis.com/?p=1287</guid>
		<description><![CDATA[In the past few weeks I have been getting a lot of questions about serial sovereign defaults and how to predict which countries will or won’t suspend debt payments or otherwise get into trouble.  The most common question is whether or not there is a threshold of debt (measured, say, against total GDP) above which [...]]]></description>
		<wfw:commentRss>http://www.mpettis.com/2010/07/20/do-sovereign-debt-ratios-matter/feed/</wfw:commentRss>
		<slash:comments>44</slash:comments>
		</item>
		<item>
		<title>Who will pay for China&#8217;s bad loans?</title>
		<link>http://www.mpettis.com/2010/04/06/who-will-pay-for-chinas-bad-loans/</link>
		<comments>http://www.mpettis.com/2010/04/06/who-will-pay-for-chinas-bad-loans/#comments</comments>
		<pubDate>Wed, 07 Apr 2010 05:05:14 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Asian development model]]></category>
		<category><![CDATA[Balance sheets]]></category>
		<category><![CDATA[Consumption and production]]></category>
		<category><![CDATA[Fiscal debt and deficits]]></category>
		<category><![CDATA[NPLs]]></category>
		<category><![CDATA[Consumer demand]]></category>
		<category><![CDATA[credit expansion]]></category>
		<category><![CDATA[Trade war]]></category>

		<guid isPermaLink="false">http://mpettis.com/?p=1215</guid>
		<description><![CDATA[Since this is a very long post, it may make sense first to provide a quick summary of what I am going to argue.  As I have discussed often in earlier posts, pessimists are starting to worry about excessive debt levels in China, about which they are very right to worry, and many are predicting [...]]]></description>
		<wfw:commentRss>http://www.mpettis.com/2010/04/06/who-will-pay-for-chinas-bad-loans/feed/</wfw:commentRss>
		<slash:comments>103</slash:comments>
		</item>
		<item>
		<title>How will an RMB revaluation affect China, the US, and the world?</title>
		<link>http://www.mpettis.com/2010/03/17/how-will-an-rmb-revaluation-affect-china-the-us-and-the-world/</link>
		<comments>http://www.mpettis.com/2010/03/17/how-will-an-rmb-revaluation-affect-china-the-us-and-the-world/#comments</comments>
		<pubDate>Wed, 17 Mar 2010 08:11:12 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Balance sheets]]></category>
		<category><![CDATA[Consumption and production]]></category>
		<category><![CDATA[Exports and imports]]></category>
		<category><![CDATA[Trade protection]]></category>
		<category><![CDATA[Krugman]]></category>
		<category><![CDATA[NPC]]></category>

		<guid isPermaLink="false">http://mpettis.com/?p=1190</guid>
		<description><![CDATA[The Chinese new year has only just started, and already trade tensions are ratcheting up. This is perhaps appropriate &#8212; astrologers tell us that the year of the Tiger is often a year of instability and conflict &#8212; and I suspect things will almost certainly get worse. The timing of various domestic political events in [...]]]></description>
		<wfw:commentRss>http://www.mpettis.com/2010/03/17/how-will-an-rmb-revaluation-affect-china-the-us-and-the-world/feed/</wfw:commentRss>
		<slash:comments>139</slash:comments>
		</item>
		<item>
		<title>What the PBoC cannot do with its reserves</title>
		<link>http://www.mpettis.com/2010/02/22/what-the-pboc-cannot-do-with-its-reserves/</link>
		<comments>http://www.mpettis.com/2010/02/22/what-the-pboc-cannot-do-with-its-reserves/#comments</comments>
		<pubDate>Mon, 22 Feb 2010 09:24:58 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Balance sheets]]></category>
		<category><![CDATA[Currency regime]]></category>
		<category><![CDATA[PBoC]]></category>
		<category><![CDATA[Reserves]]></category>
		<category><![CDATA[Policy]]></category>
		<category><![CDATA[wages]]></category>

		<guid isPermaLink="false">http://mpettis.com/?p=1173</guid>
		<description><![CDATA[It is a real toss-up as to which generates more bizarre comment in the international press: Beijing’s long-feared dumping of US Treasuries, or the use and value of the PBoC’s central bank reserves.  The revelation last week that Chinese holdings of US Treasury obligations fell in December by $34.2 billion, to $755.4 billion, generated a [...]]]></description>
		<wfw:commentRss>http://www.mpettis.com/2010/02/22/what-the-pboc-cannot-do-with-its-reserves/feed/</wfw:commentRss>
		<slash:comments>155</slash:comments>
		</item>
		<item>
		<title>Notes on a real estate trip in China</title>
		<link>http://www.mpettis.com/2009/07/20/notes-on-a-real-estate-trip-in-china/</link>
		<comments>http://www.mpettis.com/2009/07/20/notes-on-a-real-estate-trip-in-china/#comments</comments>
		<pubDate>Mon, 20 Jul 2009 12:03:56 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Balance sheets]]></category>
		<category><![CDATA[Financial crisis]]></category>
		<category><![CDATA[Real estate]]></category>
		<category><![CDATA[Notes]]></category>

		<guid isPermaLink="false">http://mpettis.com/?p=588</guid>
		<description><![CDATA[I have wanted to discuss more on the real estate sector for a while even though I have to confess I am far from being an expert on the topic, and this in a market which even the experts find terribly confusing.  What the real estate market is really telling us about underlying monetary conditions [...]]]></description>
		<wfw:commentRss>http://www.mpettis.com/2009/07/20/notes-on-a-real-estate-trip-in-china/feed/</wfw:commentRss>
		<slash:comments>64</slash:comments>
		</item>
		<item>
		<title>The US government frozen in the headlights</title>
		<link>http://www.mpettis.com/2009/02/21/the-us-government-frozen-in-the-headlights/</link>
		<comments>http://www.mpettis.com/2009/02/21/the-us-government-frozen-in-the-headlights/#comments</comments>
		<pubDate>Sat, 21 Feb 2009 10:08:39 +0000</pubDate>
		<dc:creator>Michael</dc:creator>
				<category><![CDATA[Balance sheets]]></category>
		<category><![CDATA[Policy]]></category>
		<category><![CDATA[BusinessWeek]]></category>
		<category><![CDATA[Washington]]></category>

		<guid isPermaLink="false">http://mpettis.com/?p=304</guid>
		<description><![CDATA[Often enough I find that when people want to “prove” to me that China will continue growing well this year they simply quote government statements saying that China will grow by at least 8% in 2009. There is a touching faith, especially sometimes in China, in the strong connection between expert projections and the final [...]]]></description>
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		<slash:comments>0</slash:comments>
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