Everyone has got China's debt problem all wrong

Analysts tend to focus on the default risk of China's huge debt burden. Default risk can be overcome by the Chinese government socializing the debt burden. The real risk lies in the unproductive use of debt which will affect China's productivity. The consensus on Wall Street isthatdebt is the most pressing problem facing the Chinese economy. Thelong-term risks of piling on debthave also been well-documentedbefore. The consensus viewmay be wrong, however,according toMacquarie's most recent global...