I really hate piling on the Freakonomics guys (they do some interesting work). However, they are behind the MCT curve. Again.

If you read the Freakonomics blog today, you would read about China’s debt bubble.

China said local governments owe debt equal to more than a fourth of the country’s economic output, the first time Beijing has put a number on such debt, fueling fears banks could again face mountains of bad loans and underlining the limits Beijing faces as it battles inflation.

The National Audit Office said Monday that local-government debts total some 10.7 trillion yuan ($1.65 trillion), or 27% of China’s gross domestic product last year. The report Monday was billed as a comprehensive tally of such debt, much of which was incurred during a two-year stimulus-spending binge ordered by Beijing to fight the effects of the global recession.

However, if you read MCT, you would’ve known about China’s failing ‘stimulus’  four months ago. Via MCT (March 10th, 2011):

As pointed out previously on motorcitytimes.com, China has been creating a real estate bubble over the last few years. Stagflation, both here at home and in China, is going to create a bumpy ride for the global economy.

Just thought I would point this out…