RealClearMarkets - China's Growth Is In Peril, As Is Its Economy: "....Here's the dilemma: The old model may not be sustainable, but getting to a new model may be painful. Higher interest rates could bankrupt some firms dependent on cheap credit. A revalued renminbi could close some export companies. Stronger consumption might not instantly fill the void. Naturally, those benefiting from the status quo will fight to preserve it. This defines China's predicament. In 2012, its economy grew a respectable 7.7 percent. With good policies, Lardy thinks something like this could continue. Pettis sees a harder transition. At best, growth will average 3 percent to 4 percent . That's not much higher than the United States'. China remains a colossus, but its future is increasingly clouded."
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