China debt mountain
 

The National Audit Office said that local government debts total some 10.7 trillion yuan ($1.58 trillion), or 27 per cent of China's gross domestic product last year.

China counts local debt mountain....http://www.theaustralian.com.au/busi...-1226083251222


And you can be sure the REAL figure is ten times worse.

Outstanding. So when we default, China sinks, right?

Damn those chinamen are dumb.

ah shit....we are both fucked..

Good article ...

most developed countries are in the same situation it's just not talked about much. The world is drowning in debt and since bankers rule it we're all paying instead of doing what any other business would... restructure the debt

China is heading for a major crash - a hard landing. The property market is so overinflated and vacancies abound.

Plus theres all the debt thats piling up in the banking system.

You have to bear something in mind though - China has a MASSIVE surplus (the largest in the world) and the largest amount of foreign reserves. It can bail itself out easily and many times over.

gay people have all the fun...

Actually, there real surplus my be nothing. In fact in real terms their probably around 30 trillion in debt. You need look at it in real terms. In January their Central Bank announced..The currency holdings, reported by the central bank on its website today, rose by $199 billion to $2.85 trillion. That means the debt above already wipes 60% of that out leaving only around $1.1 trillion. These reserves are based mostly on Gold and Silver. If the price drops so do the reserves. Keep in mind China also has more then a billion people, so per person those reserves are lower then most countries in the world.
Next, you have the problem of fake figures, something that China has a long history of.
Even if those figures are only out by %30 then their in debt.

But lets look even closer. That surplus figure that China is bragging about, actually includes the debt of other countries...."In an annual revision of the figures, the United States Treasury Department said that China's holdings totaled $1.16 trillion at the end of December"....THAT IS JUST THE DEBT. Not actually assets. China holds debt in Afghanistan, Iraq, Nigeria, Ethiopia, etc that totals trillions. Chances are they will need to write it all off. In effect, Chinas surplus is really more like 30 trillion in debt.

We are all going to die!!!!!!!!!!!!!!!!!!!!!!!!!!!

Most countries are fucked at this point and drowning in debt. We're all gonna take a fall.

Then who has all the money? Say there are 10 people on the planet. It would be impossible for all 10 to be in debt. Who would they be in debt to?

eventually there will be a correction
hopefully it doesn't involve war

each other :winkwink: in a a owes b who owes c who owes a kinda way. Either that or you believe in the Illuminati conspiracy theory :P

China keeps building entire cities that no one seems to want to (read: afford to) live in lol

http://www.dailymail.co.uk/news/arti...-deserted.html

housing market crash on an epic scale. :1orglaugh

The answer will probably surprise many, Russia and Saudi Arabia.

In reality most countries are creditors, but it is the above two that are REAL creditors in relation to mulitple factors such as natural reserves, etc. In the end, it should be Russia.

be the very first time if it doesn't

counters will reset, people get fucked, couintires starting all again

I was listenting to some economists on the News today and they were saying that if Greece defaults it will be banks in Germany, France, UK and US who will take the hit. So it will end up with the poor old tax payer bailing them out.

Is it just all paper money that in the end is worth little or real money?

What ever it is, the world needs to start to live withing what it earns. Debt is going to be a real crisis or a storm in a tea cup. If Russia and Saudi own all the debt, what will they do if China defaults? Going to war with China isn't an option.