This is a series of CBSi in the world. I'm John Bachelor with Gordon Chang at

Gordon G Chang, my colleague and co-host and friend, and we welcome our guide on the Chinese economy past and present

Anne Stevenson Yang. She is the author of the new highly recommended Wild Ride China's

short-lived experiment in capitalism and arrived at the beginning.

She departed at the end.

She saw the whole cycle and here we come to the formal description of what is happening in China as it sinks. This is

John Authors writing for Bloomberg and I recommend John Authors enormously because he does a wonderful job of charting what is

opinion.

China now has all the symptoms of a balance sheet recession, writes Mr. Authors, a protracted period of deflation, property market

declines, and a dead overhang.

And just as in Japan, this has followed an amazing period of growth.

What would it take to escape the quagmar?

Barclays PLC researchers argue that China faces a unique set of challenges, which in some

instances make it worse off than Japan.

Population decline, housing troubles, even more pronounced slump ahead.

And a very good day to you. a balance sheet recession. What is that? What does it mean and what is the fate of a balance sheet recession? Good evening to.

Good evening. So what that means, so on the balance sheet you put things you own with your assets, right?

So a balance sheet recession means that those assets are getting less valuable. So for example if you own a house and you bought

it for $300,000 now it's worth $150,000 so you can't sell it. So that's

what's happening in China. That's very largely the

nature of the recession, that all these assets that people own are less valuable than

they used to be. And the housing then was the beginning of this, but just a symptom.

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