Debt,Not TradeWar, Is China's Biggest Problem (300%)

America’s debt to GDP ratio is 105.40%, according to Tradingeconomic.com. Japan’s debt to GDP ratio is 250%. Institute of International Finance (IIF) last week, which place China's debt to GDP at 300%!

Worse, the government’s role as both lender and borrower concentrates rather than disperses credit risks. And that creates the potential of a systemic collapse. This means that the haircut shifted losses from one government branch to another. And created the need for new loans to cover the losses.

The situation could be more severe in China. The government simultaneously owns banks, pension funds, and common corporations.

Government-owned banks lend money directly to government owned corporations. They usually function as welfare agencies.

Banks also lend funds to land developers. They are behind the country’s “investment” bubble, one of the engines of the Chinese economy.

While the parallels between Greece and China’s debt situation and financial structure are paramount, there’s one big difference: China is huge compared to Greece.

So if there’s a financial crisis in China, the impact on the global economy will be huge, too.

https://www.forbes.com/sites/panosmourdoukoutas/2018/11/24/debt-not-trade-war-is-chinas-biggest-problem/#7cb3e6ad4c4d

 

 

所有跟帖： 

• +100. 我也正想指出这点。这就是所谓的“后真相”时代. -POCOCAT- ♂ (0 bytes) () 06/07/2019 postreply 15:37:08

• 美国的美元全世界公司个人都想要，人民币只有中国人能用，美国发行美元是面对全世界的需求，即使中国也很想要的 -fourwaves- ♂ (0 bytes) () 06/07/2019 postreply 15:57:15

• Debt to GDP breakdown -Chenmojun- ♀ (268 bytes) () 06/07/2019 postreply 15:30:08