Chinas debt ratio set to pass France, Italy, and the US

[OnMyWayID 1,489]

We tend to think of China as creditor nation but like many countries it has been borrowing lots of money to keep the economy pumping in the last few years... So much so that its national debt is now over 26 trillion and growing at an alarming rate (20% last year) and will soon hit 300% of GDP... The banks are state run so no crash will ever happen - the article says the most likely outcome will be similar to what we saw in Japan: Two decades or more of lost growth.. .Depending on when the drag from the debt hurts more than the influx of borrowed money and they are forced into an austerity type of program..

Interesting read: http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100027691/chinas-terrifying-debt-ratios-poised-to-breeze-past-us-levels/

[mota bhai 2,675]

The Beijing-based Communist regime is going to collapse. Eventually, the legitimate Chinese regime, currently exiled in Taiwan, will take the reigns and the people of that glorious land will finally be free and prosperous.

[Operator 1,927]

Except for Tibet and East Turkistan of course cuz that's just crazy talk to let those fanatics have passports.

[mota bhai 2,675]

East Turkestan is going to end up in the Caliphate where it belongs.

As for Tibet, who really cares about a bunch of mountains and some gay monks?

[Operator 1,927]

Oh you'll care about it in 2012...wait, never mind.

[Merrytooth 5,748]

The Beijing-based Communist regime is going to collapse. Eventually, the legitimate Chinese regime, currently exiled in Taiwan, will take the reigns and the people of that glorious land will finally be free and prosperous.

[OnMyWayID 1,489]

no guns, no race, no anti-US or anti-US-culture rhetoric.. No love.

[GandD 5,966]

We tend to think of China as creditor nation but like many countries it has been borrowing lots of money to keep the economy pumping in the last few years... So much so that its national debt is now over 26 trillion and growing at an alarming rate (20% last year) and will soon hit 300% of GDP... The banks are state run so no crash will ever happen - the article says the most likely outcome will be similar to what we saw in Japan: Two decades or more of lost growth.. .Depending on when the drag from the debt hurts more than the influx of borrowed money and they are forced into an austerity type of program..

Interesting read: http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100027691/chinas-terrifying-debt-ratios-poised-to-breeze-past-us-levels/

This is why is don't think debt matters. Everyone (that matters) is heavily in debt. So at some point it's not gonna matter anymore.

Edit, and holy poo (I have to say poo now) I didn't know HK was in debt.

Edited July 23, 2014 by GandD

[OnMyWayID 1,489]

This is why is don't think debt matters. Everyone (that matters) is heavily in debt. So at some point it's not gonna matter anymore.

Edit, and holy poo (I have to say poo now) I didn't know HK was in debt.

It is hard to see how it will play out when everyone is borrowing to their eyeballs.. I imagine eventually it would create more imbalance in wealth distribution - either as extraction from the poor and middle to pay the wealthy who are the ones owed or wealth flight to safety to things like gold when countries try to inflate their way out..

The Chinese leadership was in South America and Cuba this week (I think in Cuba right now) Giving Venezuela some bailout money (another 4 billion in loans against even more future oil, another 100,000 barrels per day) and securing future resources from Brazil and Argentina... Not sure what they are doing in Cuba other than tweaking the US.. Have to admit they sure kwow how to plan ahead.

Edited July 23, 2014 by OnMyWayID

[GandD 5,966]

It is hard to see how it will play out when everyone is borrowing to their eyeballs.. I imagine eventually it would create more imbalance in wealth distribution - either as extraction from the poor and middle to pay the wealthy who are the ones owed or wealth flight to safety to things like gold when countries try to inflate their way out..

The Chinese leadership was in South America and Cuba this week (I think in Cuba right now) Giving Venezuela some bailout money (another 4 billion in loans against even more future oil, another 100,000 barrels per day) and securing future resources from Brazil and Argentina... Not sure what they are doing in Cuba other than tweaking the US.. Have to admit they sure kwow how to plan ahead.

I certainly does seem to be the case. I wonder what the discrepancy is from what is borrowed to what is owed. Is the worlds economic system robust enough to accurately keep track of the differences with currency exchange/devaluation/appreciation? I'm really a novice at this but I'd be curious to see an actual study showing who/what owns what percentage of the great nation's debts? It's certainly not any government. So is the private sector really loaning out dollar for dollar to world powers? Really I would like to know what is really borrowed and what is really owed, ya know? Without the gold standard it's hard to quantify I think. If the us prints more money and the dollar value drops, do all systems accurately account for that. What's the round off costs in dollar amount?