While China’s role in global trade is highly publicized and politically polarizing, its growing influence in international finance has remained more obscure, mostly due to a lack of data and transparency. Over the past two decades, China has become a major global lender, with outstanding claims now exceeding more than 5% of global GDP. Almost all of this lending is official, coming from the government and state-controlled entities.
Our research, based on a comprehensive new data set, shows that China has extended many more loans to developing countries than previously known. This systematic underreporting of Chinese loans has created a “hidden debt” problem – meaning that debtor countries and international institutions alike have an incomplete picture on how much countries around the world owe to China and under which conditions.
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WNU Editor: The Chinese have lent $1.5 trillion dollars to the world. That is a lot of leverage.
15 comments:
I want to see them collect. How does one repossess a soccer stadium?
Ultimately of course it is a very long term but peaceful domination strategy.
They have invaded many countries, not with military, but with relationships and it is not hard to write off a financial non paying asset. A strategy that is often seen by intelligent and peace loving people as being much easier to handle and more preferable to bankrupting your country and burying your dead soldiers while incurring the wrath of the world for war crimes committed.
Soon they will dominate Canada a country with no soul. They'll send useless mouths like Bob to re-education centers for his own good of course.
Fredo,
peaceful domination strategy?
Do you know much about world history?
Do you occasionally put down the picture books and wonder how the British ended with Egypt at the late date of 1882?
Are you curious about things other than the nether_______?
Maybe if you knew 'something something' about finance and investment, you would see Bobbies 2-fer. Well, that us too much midnight oil to ask for.
There is the usual America bashing which went right by you (or maybe you agree with it). and there is the 2nd part.
Actually, I think you agree with it. You are going to vote for Bernie after all. We all know that. We knew what you were going to do before you knew what you are going to do.
www.youtube.com/watch?v=R4GLAKEjU4w
Ooooh squirrel, you are so clever. Don't you think it's time to morph into squid and squirt some ink?
Anon
"....say something that is adult ...."?
Okay try this:
If you don't like what I post don't read it and if you do read it, don't comment on it because in doing so you add credence to what I said and/or may have implied.
Or perhaps you would prefer this:
I tend to think that this week's massive stock sell off was caused, in part and once it got going increased, by margin buyers bailing out and if so the sell off next week will be even higher, again mostly due to further margin adjusting. Repercussions will follow impacting a lot of investors and pension funds that will take a long time for recovery.
Anon and Anon
Sorry if I keep mixing you guys up. It's may age I think and it is hard to concentrate what with all that wanking I do.
There I go again. Can't even spell "my" property.
And again. "properly.
....damn and forgot the closing ".
I give up. Anon. The idjit one. I'm turning into you for crying out lowd.
I did that "lowd" bit on purpose.
Apple is buying its stock. It is cheap for them. They will make money on it.
They believe that their stock will come back.
Companies buy back stocks for a few reasons. One is to prevent corporate takeovers by others buying their stock.
We know the PRC does not want to lose power. They willed factories to restart. In the meantime they will round up dissidents and congratulate themselves.
May will be a good month for production and business.
For sure those with money will have dumped early and will buy back before the upward trend becomes to radical, especially if they are in business and are forewarned that normality is about to be restored. A lot of people who can ill afford to take a bit hit will take a big hit.
A lot of that debt is going to default, and when it does China is going to find out not everything will go according to their plan.
1) Some of it will go according to their plan - they take over all the collateral owed to them, and the country rolls over. China gets full payment, but there is grumbling.
2) Other countries default, and the only way for China to collect is to get very heavy handed which generates resentment against China and Chinese. They manage to collect much of the money, but their reputation sinks and many countries become outspoken anti-Chinese. This also includes situation where debt does default, but some other kind of arrangement is made - pennies on the dollar or renegotiation where China gets far less money than it expected.
3) Other countries default, and the only way for China to collect is to send in troops or use some other force. Perhaps they use some pretext in order to hide this is just a cash grab. This is a dangerous situation, but such gunboat diplomacy was common prior to WW2. It may or may not work in getting them their money. But it will ruin their reputation/
4) Countries default and tell China off, and China isn't able to respond to that particular incident because of whatever factors are involved. This is essentially parallel to the third world nationalizing all those assets of the US and Europe during the Cold War.
How much of a benefit and harm it does really depends on specifics. But there is a substantial chance that default could hurt the Chinese financial system a lot.
Chris
"A lot of people who can ill afford to take a bit hit will take a big hit."
You ride it out and 6 months or a year later you are good.
But Bob is doing his gloom and doom shit again. He reminds me of Axis Sally or Lord Haw Haw. It should be looked into.
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