It has recently come to light that proceeding 2009 Chinese authorities have fabricated their debt levels after pursuing post crises quantitative easing policies. Producing trillions in non-performing loans (loans where profit does not exceed loss), thus creating a very large debt bubble. However, according to Goldman Sachs, where a year long study has taken place, assessing the true levels of debt in China, the nation's deficit figure has been determined to be close to 25 trillion dollars. This is troublesome as this makes up 65% of China's GDP. In addition to China's make believe debt levels, the government has also fabricated loan creation figures as well. The Chinese economy has depended heavily on foreign lending, so it would not be advantageous for the public to understand exactly how healthy Chinese markets are.

By measuring monetary expansion levels (a mirror image of credit levels) Goldman has been able to quantify the rate at which credit has expanded. it is important to recognize that 40% of the Chinese economy depends on the growth of lending, which does not bode well for the nation's financial outlook. Naturally, the country as a whole depends on these lending practices, the following is a concluding quote from a Goldman analyst. "Given the prospective headwinds from slower housing construction and tighter on-budget fiscal stance in the coming months, there remains a clear need to sustain a high level of infrastructure investment, which is credit intensive, to achieve the minimum 6.5% full-year growth target". These findings are disturbing and will likely yield troublesome implications not only within Chinese financial markets, but also for the economy as a whole.