Everyone knows that China and the emerging economies are the growth engine for the global economy. The Western countries are obviously far more developed and unable to grow at the same rates as China, India and the rest of Southeast Asia.
Marc Faber sees the huge credit bubble in China as being the main threat to that growth. Not just the documented levels of credit but also the large amount of "underground" loans that are outstanding.
Faber believes that the real growth that China will experience in 2013 will be considerably lower than what the Chinese government will officially release. He thinks certain sections of the Chinese economy could actually enter recession.
His view of the next 20 years in China? Lots of growth ahead of China says Faber, but with plenty of bumps in the road.
