In China, nobody can hear the economy scream

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The imploding China property ponzi scheme is like a gaping maw on mute:

A potential default at developer giant Country Garden Holdings Co. has led to greater skepticism of the efficacy of China’s property policy help.

A group of builders that have received assistance in the form of state guarantees on yuan note sales have suffered the most in recent days after Country Garden’s stumble showed that such aid hasn’t been sufficient to help avoid repayment risks.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.