The rate of loans at serious risk of default on Chinese bank's books is at least 3 per cent of assets. "That's a trillion dollars," says Bass. There is also capital flight. "There are 1.3 billion people in China. If 4 per cent of the population took out their US$50,000 limit, the $3.3 trillion in foreign reserves is gone... "The International Monetary Fund stipulates that China needs about US$2.7 trillion in foreign exchange just to operate their import-export business. They'll hit that number in the next five months."
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