The Chinese hard landing scenario is being ignored in Asia and it threatens to take down the global economy with it, says Dylan Grice.

In his latest piece, Grice points out that, on his trip through Asia, no one is even talking about the threat of a hard landing for the Chinese economy. There's so much confidence, Grice says, that it's got him more concerned the Chinese government is incapable of halting speculative activities by its citizens.

From Dylan Grice (emphasis ours):



Grice doesn't see this scenario playing out for one or two years, and that the trigger would be a too late response to serious inflation. And while the country seems to be trying to get ahead of the inflation problem now through food price controls, those will eventually have the reverse impact, driving prices higher, according to Grice.

But what's the common element in very bubble that China has? Its rapid credit expansion.

From Dylan Grice (emphasis ours):



ChartSociete Generale


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