The Great China Rug Pull

The China Growth Miracle is officially a math problem that no longer adds up.

We are witnessing the world’s second largest economy pivot from a global engine into a massive debt fueled treadmill.

The structural reality is a total trap.

China is now burning through 5.5 units of new debt just to squeeze out one single unit of GDP growth.

Achieving that official 5% target isn't a sign of strength.

It is a desperate borrowing spree to mask a shrinking labor force and a hollowed out property sector.

With a debt to GDP ratio screaming past 300% and a working age population in terminal freefall, the miracle is over.

NB: This is a fundamental re-rating of global risk.

China is following the Japan lost decade path only with more debt and fewer young people.

If your investment thesis relies on the China of 2010, you are betting on a ghost. The East is no longer the engine.

The Dragon has grown old before it grew rich.

Expect the low growth high debt path to be the permanent baseline.

The smart money is already exiting the building.