Jim Edwards, Business Insider: How China accumulated $28 trillion in debt in such a short time
Bank of America Merrill Lynch became the most recent financial institution to start sounding scared about China’s debt.
While no one is panicking just yet, there sure are an increasing number of people — including analysts at UBS and Macquarie — who are talking about when it might be appropriate to consider panicking.
To recap, China’s total debt is about $28 trillion, or roughly half the world’s entire debt.
WNU Editor: China's economy has been the engine that has been driving the global economy for the past few years .... now we know how they have been able to do it. With the Chinese economy cooling down the repercussions from all of this debt are going to be severe .... commodity prices, currency stability, interest rates .... they are all going to be impacted. Bottom line .... the boom times are almost over.
Update: 46 Months Of Accelerating Deflation Mean Beijing Is Now Trapped (Zero Hedge).
14 comments:
Since we are on the topic of China. I got tipped about this information: http://news.xinhuanet.com/english/2016-01/06/c_134980580_2.htm
And there are also rumors about a 5 thousand Chinese troop deployment in Syria, any of your Chinese friends hinted to that or a Chinese initiative for a UN supported ceasefire with peacekeepers deployed? Or is this just a continuation of the carrier story that was debunked? I think it will be a good idea keeping a eye on China's plans for Syria in the coming months, if they have any advisers deployed or if they are increasing their activity near Syria both on the sea and air.
WNU Editor,
"They" have been predicting a Chinese Economic collapse since 2001.
Instead, China has been the "little engine that could", dragging the rest of the World's failing economies with it.
Take predictions of a Chinese collapse with a grain of salt.
Rhaegar. There may be a few Chinese advisers (maybe). But 5000 soldiers .... no way.
Jay. I know about the predictions of China's collapse .... I have been laughing at them for years. Gordon Chang at Forbes has been the worst. But .... it is a little different now. Double digit growth is no longer the normal fro China.
The world economic situation is terribly confusing. On the one hand we see America's debt at or around 19 trillion not even taking in consideration outstanding debt ie. Social Security, Medicare etc. I've heard that number as high as 150 trillion. Next, I heard the European situation is dire with nations such as Spain, Greece, Portugal, Italy and all the eastern block pretty much broke. Now it's China and their ghost cities and the Ponzi scheme that created all this illusionary wealth. Japan is cooked, most North Americans can't even spring for 500-1000$ in case of an emergency and our middle class is no longer the largest group! The whole world looks like it's pooched. Realizing the world is global and interconnected in terms of commerce, I am stumped that a world wide depression hasn't already hit. I scratch my head and keep wondering how long we can keep this false economy going before it completely blows up.
WNU Editor,
Niggardly or negative GDP growth since 2008, has been the norm in the West, and as Krugman noted, "you can't eat GDP",
It's been a highly symbiotic relationship, "we" shipped "them" our jobs and factories, sold them raw resources and speculative investments,
In turn they made the cheap clothing, toxic toys and melamine loaded food for our poor,
"they" sold "us" the cell phones, laptops, TV's, tablets and gaming systems to keep our Middle Class diverted while they disappeared as a "species",
and "they" provided our multi Billionares with double digit returns, tiger penis viagra, shark fin soup and the chance to exclusively hunt wild panda's, until of course the collapse.
Now we are all hoping that their working class and middle class consumption will drag "some" of "us" out of the economic mess of our own creation.
China's "ghost cities" are not.
http://thediplomat.com/2015/10/the-truth-about-chinas-ghost-cities/
https://www.bullionstar.com/blogs/koos-jansen/guest-post-5-chinese-ghost-cities-came-alive/
When Canada started building the TransContinental Railway, there was a total of 900 miles of track in Canada and all of 17 SteamEngines.
When Eisenhour started building the US Interstate System, 1:70 American families had cars and only 3% of US Interstate commerce moved by truck.
Once upon a time, in the West, infrastructure investment preceded growth and development, now it lags far behind.
The Western press loves dumping in China, here saying that its national debt (less than half the US's) is a potential crisis. Ho-hum.
Let's send Nancy Pelosi over there.
She can explain how boosting welfare boosts the economy.
"Let me say that unemployment insurance… is one of the biggest stimuluses (sic) to our economy. "
If Nancy Pelousy is not available we can send Steny Hoyer.
I have been to China and was told not to be too ebullient, because things were hard due to recession.
If this is worse...
The problem with China is that a lot of Chinese are driving...Buicks. General Motors sells more cars in China than in the US, mostly Buicks. They haven't heard.
Plus they've got those hundreds of miles of high speed rail, compared to the US which has......is that the doorbell ringing?
How much US debt does China still hold? Will they sell that at a discount to pay off there own debt? How much of China's debt is held by foreign governments? Will they bale and take nickles on the debt now instead of pennies later?
Don,
".Buicks. General Motors sells more cars in China than in the US, mostly Buicks."
If we had only gotten them buy Pintos we wouldn't be in this mess.
How much of this is truth and how much is merely angst and the green eyed monster over the New Silk Road project? China has things on the go besides Katlyn whatever and Cosby's dirty underwear. Shws shut out of the TPP of cross dressers, lint pockets and vassals. She didn't seem to care.
If she's interested in a new export to America and friends, I suggest glass belly buttons. With their heads buried so far up their behinds, they most certainly need them to find their way.
https://www.rt.com/news/327481-china-president-xi-rap/
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