Imposing a ceiling on local government debt could prevent a Greek-style crisis from erupting on the mainland

While parts of the world are dealing with the aftermath of the financial crisis or an emerging sovereign-debt crisis, China is coping with the risk of overheating and/or an asset bubble.

Many factors may be pushing China's economy in this direction. One of the most worrying is the same factor that fueled the current crisis in the Eurozone - mushrooming public debt.