"We're quite sceptical and worried," he added. "China needs a healthy U.S. ... consumer and it's not getting it right now.... China could be a catalyst for a severe leg-down in markets," he said.
He also cited recent cases of fraud in China and the country's booming real estate sector as issues.
"Corporate governance and the rule of law is very different from the West," he said. "(And) there's a huge bad loans issue in banks. The real estate market is probably in the biggest bubble in the world we have right now."
"(China's) tried to pop the property bubble that's forming," he added. "They have so many reserves they can increase infrastructure spending."No, they can't. Not without devaluing the Yuan that they traded for that foreign currency. Only 400-500 billion of their holdings are unencumbered in this way.
(All right, that's a lot, but only if they don't let another 120 billion vanish with fleeing corrupt officials.)