Economy China's Debt has exceed 300% of GDP-- now 15% of global debt

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China's debt tops 300% of GDP, now 15% of global total: IIF
Reuters said:
(Reuters) - A key gauge of China’s debt has topped 300% of gross domestic product, according to the Institute of International Finance (IIF), as Beijing steps up support for the cooling economy while trying to contain financial risks.

China’s total corporate, household and government debt rose to 303% of GDP in the first quarter of 2019, from 297% in the same period a year earlier, the IIF said in a report this week which highlighted rising debt levels worldwide...

“While authorities’ efforts to curb shadow bank lending (particularly to smaller companies) have prompted a cutback in non-financial corporate debt, net borrowing in other sectors has brought China’s total debt to over $40 trillion - some 15% of all global debt,” the report said.

“Of note, onshore bond issuance suggests a big pickup in borrowing by local governments and banks this year.”

China’s economic growth slowed to 6.2% in the second quarter, its weakest pace in at least 27 years, as demand at home and abroad faltered in the face of mounting U.S. trade pressure.

To revive investment and protect jobs, Beijing has been encouraging banks to lend more, particularly to struggling smaller firms. It has also unveiled billions of dollars in tax cuts and infrastructure spending.

In the first half of this year, local governments’ total net bond issuance reached 2.1765 trillion yuan ($316.5 billion), the finance ministry said on Tuesday.

Chinese officials have said repeatedly said debt risks are manageable overall.
Well, if you were worried about our overspending, you only need be thankful you don't live in a socialist economy. Their GDP growth always looks great, which provokes envy and fear in us, but probing deeper, their GDP growth-to-debt ratio is catastrophic.

In the West this glorified Ponzi scheme shifting the burden of debt has historically depended on an influx of cheap immigrant labor, and tapping the large worker populations of foreign countries with outsourcing (that will presumably be further sustained by an ever-increasing population). Whether from abroad or from the future, it always needs to find more people to hold the bag. Yet China has aggressively sought to curb their own population growth, and insofar as international trade is concerned, they strongly prefer exporting goods, not outsourcing jobs, though some will point to their activities in the Middle East and Africa as examples of patterning themselves after the behavior of "imperialist capitalists". They are staunchly xenophobic on the matter of immigration.

I'm not sure how much longer they'll be able to keep it up. It appears they've admitted a larger government doesn't inherently translate to a larger economy, here. I envy meaningful infrastructure spending, but unless you nibble from the rest of your budget, you can't simultaneously raise spending while cutting taxes without exacerbating the debt problem in the long term.
 
It is a house of cards that Trump is gonna blow over.

 
There was so much talk about America's debt and the amount of that that China owns, I had no idea China was in worse debt than us

How the fuck does a global economy work if everyone is in debt to everyone?
 
There was so much talk about America's debt and the amount of that that China owns, I had no idea China was in worse debt than us

How the fuck does a global economy work if everyone is in debt to everyone?

I think you're misreading the story. That's combining corporate, household, and gov't debt. It's a bad story anyway--the only attempt to put the number in any context was comparing it with the previous year, and it doesn't really explain the effects. Obviously there is no economy-wide Ponzi scheme.

As for the question, remember that every debt contract has a buyer and a seller. It's not possible for the world economy to borrow from the future. A lot of bad takes could be prevented if people would just remember that the economy is goods and services.
 
I came across a funny tweet by james franco pertaining to this

"CNN just said the world is in a 317 trillion dollar debt.

Who the fuck do we owe money to? The decepticons????"
 
Their growth was only amazing because they started from almost nothing when the economy shifted into capitalism. They had a lot of room to grow, unlike first-world economies who were already developed. Most of their debt is owed to Chinese government-owned banks, the issue is that these banks are lending money to projects that have no economic viability e.g. ghost towns built so poorly the walls fall apart after 2 years and located in areas with no demand for lodging, roads leading to nowhere, infrastructure built so poorly it needs to be re-done every few years, railway projects that were never finished, etc. I know a Chinese guy and he told me the road in front of his house was literally destroyed and re-paved every single year. It's kind of interesting to see that even capitalism can't save them from government corruption and poor government spending of other people's money. They won't collapse though, they'll just live in not-great conditions until they find a way (or the will) to get rid of their totalitarian government.
 
China's debt tops 300% of GDP, now 15% of global total: IIF

Well, if you were worried about our overspending, you only need be thankful you don't live in a socialist economy. Their GDP growth always looks great, which provokes envy and fear in us, but probing deeper, their GDP growth-to-debt ratio is catastrophic.

In the West this glorified Ponzi scheme shifting the burden of debt has historically depended on an influx of cheap immigrant labor, and tapping the large worker populations of foreign countries with outsourcing (that will presumably be further sustained by an ever-increasing population). Whether from abroad or from the future, it always needs to find more people to hold the bag. Yet China has aggressively sought to curb their own population growth, and insofar as international trade is concerned, they strongly prefer exporting goods, not outsourcing jobs, though some will point to their activities in the Middle East and Africa as examples of patterning themselves after the behavior of "imperialist capitalists". They are staunchly xenophobic on the matter of immigration.

I'm not sure how much longer they'll be able to keep it up. It appears they've admitted a larger government doesn't inherently translate to a larger economy, here. I envy meaningful infrastructure spending, but unless you nibble from the rest of your budget, you can't simultaneously raise spending while cutting taxes without exacerbating the debt problem in the long term.
By "Socialist" you mean Communist?

China is Communist in name only. They are a 1 party no holds barred Capitalist society.
 
By "Socialist" you mean Communist?

China is Communist in name only. They are a 1 party no holds barred Capitalist society.
they are what Communism always devolves into. A totalitarianism that is abysmal for the people.
 
they are what Communism always devolves into. A totalitarianism that is abysmal for the people.
Capitalism also can be totalitarian. What do you think Saudi Arabia is. China is a Capitalist country ; the government does not own all property and means of production. Totalitarian form of government can take many forms.
 
By "Socialist" you mean Communist?

China is Communist in name only. They are a 1 party no holds barred Capitalist society.
I mean socialist. You can be more specific if you like.
 
I mean socialist. You can be more specific if you like.
The right uses "Socialist" as a synonym for Communist.

China is a hardcore Capitalist society; to call them Socialist (i.e. collective ownership of production and distribution) is not accurate.
 
As for the question, remember that every debt contract has a buyer and a seller. It's not possible for the world economy to borrow from the future. A lot of bad takes could be prevented if people would just remember that the economy is goods and services.
To deny that debt can be imposed on the future is to deny the concept of credit as a shared burden.
 
The right uses "Socialist" as a synonym for Communist.

China is a hardcore Capitalist society; to call them Socialist (i.e. collective ownership of production and distribution) is not accurate.
#Notrealcommunism. Spoiler: "real communism" doesn't exist and can't possibly ever exist. It devolves into dire poverty for everyone but politicians and military officers 100% of the time. Under no circumstances is China a "hardcore capitalist" country. They pulled back a little from the communism they had after reaching a fucking shocking death toll and making people drown their daughters in rivers, and now have oligarchic capitalism for some where a handful of guadrillionaires buy up shit and invest in other countries while everyone else has nets around their workplace so they have to commit suicide on their own time. Take a trip to Moscow sometime, they have the same thing. The #realcommunism both countries tried fucked those places over for a good century and they won't be decent places to live in my lifetime or yours.
 
To deny that debt can be imposed on the future is to deny the concept of credit as a shared burden.

It's to deny that we're using time machines. Remember that the thread is about collective debt that isn't all public.
 
Imagine the very mods that police this place are just as doctrined and ignorant as the posters.

Who woulda guessed
 
To deny that debt can be imposed on the future is to deny the concept of credit as a shared burden.
He's saying that every dollar (or whatever currency we're talking about) of debt is a dollar of assets.

So measuring the total debt of a country isn't that useful. If Chinese Man A borrows money from Chinese Man B, that's an increase in total debt. And it doesn't mean anything.

China's debt-to-GDP (national debt that is) ratio is half that of the US.
 
btw the OP is filled with lots of ignorant rambling.

Public debt is not a Ponzi scheme (that statement shows equal ignorance towards public debt AND Ponzi schemes) and the US national debt has fuck all to do with importing immigrant labor. The countries exporting said labor also have national debt of their own. How come?
 
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