After the Great Recession (aka Global Financial Crisis) caused by America’s sub-prime mortgage meltdown, Xi Jinping prevented political instability arising from high unemployment using a debt-driven and dramatic building campaign. It worked. But now provincial debt and the decline of the property market have created a capital crisis for wealthy and middle class Chinese. This crisis has created political turmoil in the Chinese Communist Party. 

When he put wealth accumulation at risk for political elites, Xi put his career at risk. With an anemic, CCP-controlled stock market, real estate and gambling were favorite ways to spend money, and Xi has put both at risk. High net-worth moguls are leaving and internal tensions are building as a lack of foreign investment is stalling government actions needed to re-capitalize the failing economy.

The buck should stop at the Chinese General Secretary’s desk, but no bucks are flowing.