Be Very Afraid of The China Bubble

Its economy grew on real estate mania and easy money--does this sound familiar?

Photo-Illustration by Kevin Van Aelst for TIME

Be Very Afraid of the China Bubble

What's the most important economic question in the world today? One contender is whether the euro will collapse. Another is whether the U.S. will plunge into a double-dip recession. But a third, and possibly the most important over the long term, is whether China can save the world--or whether the entire country is a $6 trillion bubble that's ready to pop.

That's the size of the Chinese economy, now the second largest in the world, after the U.S.'s. China contributed 19% of global economic growth in 2010, and that's expected to increase to 24% this year. China's strength is essential to...

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