Sure Greece is on the cusp of civil war (reports of army and police units having views that differ to the PM). But some interesting news from China's Auditor General.
I've written about China's debt problems here and here.
Lots of articles about it globally but I'll go with Mike Shedlock's blog post as it has some good other onwards links as growing evidence of a growing storm.
http://globaleconomicanalysis.blogspot.com/2011/06/chinas-top-auditor-warns-of-chinese.html
Local governments had an overall debt of 10.7 trillion yuan ($1.65 trillion) by the end of 2010, said China's top auditor on Monday in a report to the National People's Congress.
He warned that some were at risk of defaulting on payments.
It was the first time the world's second-largest economy publicly announced the size of its local governments' debts. The scale amounts to more than one-quarter of its GDP in 2010, which stood at 39.8 trillion yuan.
Concerns are rising that the problem of local government debt could destabilize the financial system of the country if it is not managed properly, especially after the central government's tightening of the housing market, which could affect local fiscal revenue that is highly dependent on land sales and make debt repayment more difficult.
As long as credit bubbles expand, no one heeds warnings like that issued by China's top auditor. Then when the bubble bursts, everyone cries they were not warned, they were taken advantage of, and they deserve a bailout.
One thing's for certain, when China's credit bubble pops, it will rock the world.
I suggest you read Mish's post and all the links to civil unrest, empty cities etc.
Bonus video from Hugh Hendry...
Dateline.
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