This would make Credit Anstalt look like a walk in the park.

RBS warns clients to hedge a growing China sovereign credit default risk.  Now.

Credit Anstalt was the Austrian Bank whose collapse that globalized Wall Street's 1929 collapse and destroyed the global banking system  If China's credit bubble is as bad as the Scots think (and given decades of boom and a banking system lousy with preferences and corruption is probably is) then on some bright spring day China's banking system could just up and go "foom".

And with a full scale collapse on their hands an already seething social cauldron could explode in the traditional Chinese fashion.

Did I mention they have nuclear weapons?

Now that would be one heckuva 'foom'.