Broken China

I've always like James Grant's skeptical take on business and the economy. But his article Broken China spells out what is really going on in China today. I had occasion to do some business there recently, and I was surprised to find out that corruption and outright theft is endemic. The general rule seems to be that 10% of a deal should go to bribe the appropriate officials. I've also heard the Chinese banking system is a mess, but I did not realize how so. Their numbers would make a 1980s S&L president blush. Now I know where they are getting the 'money' they are loaning the US. Be careful when this one unwinds.