Via Mish's Global Economic Trend Analysis: "China's growth is nothing more than a credit bubble on steroids. Cities are vacant, yet China keeps building, and building and building.
The true state of affairs is China's banks are insolvent. China is building units for which there is little demand and few can afford. China will have to print money to pay for all of this malinvestment. The idea the Yuan is undervalued fails to take into consideration any of this."