1. Reading the Signs

    Krugman: China’s About to Blow

    Lightning strikes over the Beijing skyline during a thunderstorm early on July 12, 2009, near the city's tallest skyscraper, the China World Trade Center Tower 3. Lightning is an atmospheric discharge of electricity accompanied by thunder, which occurs typically during thunderstorms when, in an atmospheric electrical discharge,  a bolt of lightning can travel at speeds of 60,000 m/s (220,000 km/h) and can reach temperatures approaching 30,000 °C (54,000 °F), hot enough to fuse silica sand into glass channels known as fulgurites which are normally hollow and can extend some distance into the ground. AFP PHOTO/Frederic J. BROWN (Photo credit should read FREDERIC J. BROWN/AFP/Getty Images)

    Frederic J. Brown, AFP / Getty Images

    It's not a day in news without requisite worry about whether China will overtake the U.S. as the world's economic superpower, but New York Times columnist Paul Krugman says we should be focusing on how volatile China has become. "Recent growth has relied on a huge construction boom fueled by surging real estate prices, and exhibiting all the classic signs of a bubble ... Now the bubble is bursting—and there are real reasons to fear financial and economic crisis." Western commentators assume China can solve all its problems because it doesn't have to be democratic. "To me, however, these sound like famous last words."

    Read it at New York Times