China Has A Subprime Crisis, Rolled Into A Faux Commodity Crisis, Wrapped In A Realty Bad Loan Banking Crisis, That Will Make What The Us Had Look Like A Kindergarten Picnic.

CHINA’s COMING CRACKUP: Banker jumps to death over bad loans
(Beijing) – In an apparent suicide, a high-level executive of a state-owned investment company leapt to his death in downtown Beijing.
Wang Shiqiang, 60-year-old chairman of the board of supervisors for China Jianyin Investment Securities Co., appeared to have jumped to his death on the afternoon of April 16 from the top of the office tower that houses China Jianyin.
In an issued statement, China Jianyin said the suicide was due to personal issues in Wang’s life, refuting online speculation that the death was tied to heavy losses incurred by gold investments. It is yet unclear how much risk exposure China Jianyin has to gold futures.
The company published an obituary on its website two days later which said Wang “passed away from health problems.”
http://english.caixin.com/2013-04-18/100516126.html
Chinese Auditor Warns “Out Of Control” Chinese Debt Could Spark Bigger Crisis Than US Housing Crash
“This could be even bigger than the US housing crisis,” warns senior Chinese auditor Chang Ke, as his accounting firm has all but stopped signing off on bond sales by local governments (as we warned most recently here). As the FT reports, Zhang’s firm “audited some local government bond issues and found them very dangerous,” as they don’t have strong debt-servicing abilities. “It is already out of control,” he continues, “the only thing you can do is issue new debt to repay the old,” he said. “But there will be some day down the line when this can’t go on.” With more than 2,800 counties having discovered the investment-vehicle-bond (a way to avoid the prohibition or directly raising debt), Zhang notes that this “frightening” evolution has led to a situation where he puts little faith in the government guarantee, advising that “when the time comes, it won’t be the government that assumes responsibility. It will be the accounting firms and the banks that do.”
Via The FT,

A senior Chinese auditor has warned that local government debt is “out of control” and could spark a bigger financial crisis than the US housing market crash.

Zhang Ke said his accounting firm, ShineWing, had all but stopped signing off on bond sales by local governmentsas a result of his concerns.

“We audited some local government bond issues and found them very dangerous, so we pulled out,” said Mr Zhang, who is also vice-chairman of China’s accounting association. “Most don’t have strong debt servicing abilities. Things could become very serious.”
 …

“It is already out of control,” Mr Zhang said. “A crisis is possible. But since the debt is being rolled over and is long-term, the timing of its explosion is uncertain.”

…

Local governments are prohibited from directly raising debt, so they have used special purpose vehicles to circumvent these rules, issuing bonds under the vehicles’ names to fund infrastructure projects.

http://www.zerohedge.com/news/2013-04-17/chinese-auditor-warns-out-control-chinese-debt-could-spark-bigger-crisis-us-housing-
COMMODITIES CRASH: Gold Futures Sink on Weak Sentiment Following Disappointing China Data
http://www.nasdaq.com/article/commodities-crash-gold-futures-sink-on-weak-sentiment-following-disappointing-china-data-cm236689#ixzz2QpLlGNme

Vice Chairman of Chinese Accounting Association Warns Chinese Local Debt Could Create Bigger Crisis than US Housing Implosion
http://www.economonitor.com/blog/2013/04/vice-chairman-of-chinese-accounting-association-warns-chinese-local-debt-could-create-bigger-crisis-than-us-housing-implosion/
“China Accounts For Nearly Half Of World’s New Money Supply”
So how do deposits look when comparing the US and China? Well, after having less than half the total US deposits back in 2005, China has pumped enough cash into the economy using various public and private conduits to make even Ben Bernanke blush: between January 2005 and January 2013, Chinese bank deposits have soared by a whopping $11 trillion, rising from $4 trillion to $15 trillion! We have no idea what the real Chinese GDP number is but this expansion alone is anywhere between 200 and 300% of the real GDP as it stands now.
By comparison, and as the chart below shows, US deposits have not even doubled over the same time frame instead increasing from $5 trillion to just over $9 trillion.

http://www.zerohedge.com/news/2013-02-08/china-accounts-nearly-half-worlds-new-money-supply