Confirming the thesis expressed in American Thinker on October 21st regarding the growing uncompetitiveness of China manufacturing, two days later Bloomberg.com reported "China's biggest banks tripled the amount of bad loans written off in the first half, cleaning up their books ahead of what may be a fresh wave of defaults." Despite the common belief among economists and most Americans that the booming Chinese economy of the last ten years was a "miracle", it is now apparent that the secret sauce for China's success was allowing a massive expansion of bad loans to subsidize Chinese employment in manufacturing.
