2015: The Year China Goes Broke?

Beijing’s efforts to defend both stocks and the currency are severely straining its finances. --China, the Financial Times noted Friday, could exhaust its foreign exchange reserves within a year as it defends the value of its plunging currency, the renminbi. The paper’s arithmetic is correct of course, but the projection, which at first sounds alarming, is actually optimistic. Beijing might be broke in months—and maybe by the end of this year—despite now holding the world’s largest foreign exchange reserves.

Read more at the National Interest
(Hat tip: KimR)