Prominent Chinese economist warns country’s debt becoming problem

https://www.rt.com/business/400137-china-debt-balloon-problem/

China’s growing debt is affecting the country and the global economy, according to Charlene Chu, an influential China analyst.

“Everyone knows there’s a credit problem in China, but I find that people often forget about the scale. It’s important in global terms,”Chu said in an interview with the Financial Times.

Chu, who made her name warning of the risks from China’s credit binge, has predicted that by the end of the year, the country will accumulate $7.6 trillion worth of the so-called “bad” debt.

The comment came the day after the International Monetary Fund (IMF) warned that Chinese debt could be the reason for the next financial crisis as borrowing becomes unsustainable.

“International experience suggests that China’s credit growth is on a dangerous trajectory, with increasing risks of a disruptive adjustment or a marked growth slowdown,” the IMF report said.

The IMF said China needed three times as much credit last year to achieve the same amount of growth as in 2008.

A report in June by the Institute of International Finance (IIF) said China’s total debt was over 304 percent of GDP as of May this year.

Moreover, “the household debt-to-GDP ratio hit an all-time high of over 45 percent in the first quarter of 2017 —well above the Emerging Market average of around 35 percent,” the IIF said.

Since the 2008 financial crisis, China has become the growth engine of the global economy. The country has contributed to more than half the increase in world’s GDP in recent years.

———

“Chu, who made her name warning of the risks from China’s credit binge, has predicted that by the end of the year, the country will accumulate $7.6 trillion worth of the so-called “bad” debt.”

oh yeah..china..would they lie to us?

and here it is..straight from the IMF:

“The comment came the day after the International Monetary Fund (IMF) warned that Chinese debt could be the reason for the next financial crisis as borrowing becomes unsustainable.”

401

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~ by seeker401 on August 23, 2017.

7 Responses to “Prominent Chinese economist warns country’s debt becoming problem”

  1. “The IMF said China needed three times as much credit last year to achieve the same amount of growth as in 2008.”

    The fickleness of the world. The IMF wanted to move to China, now it is The problem. Of course their credit is higher due to inflation, which I am beginning to think the central banks are ‘eating’ the inflation in order to sustain their global debt program. They could solve it with mercy. A debt forgiveness program. Instead, the banks need to debt to exist, but it is nation or business who legally own the debt – the banks only make the debt by loaning, they are not really the legal owners of the debt (sarcasm). Rinse and clean.

    • there will be NO debt forgiveness..that would ruin everything! 😦

      • that would ruin everything, plus everybody else to blame, not them. They are just loaning the debt. It is not their fault people can not do good business and pay it back. It is not like they regulate and make the system also – oh wait they do.

        • 🙂

        • BUT, WHAT IF…. the Jesuit Social Warrior Pope is unhappy with them all, greedy international bankers AND their Wall Street Corporations ?

          What IF they ALL are breaking the Golden Rule,of the Catholic Church, that NO ONE is above the law. ( pretty sure they make the laws, and of course they protected those who worked in their favor)

          BUT……

          WHAT IF that is why the pope put forth the Motu Proprio?
          Dissolving all corporations AND the immunity from prosecution that the crooks enjoyed?

          IF this is true, then those who thought ‘they’ were gods too, could find themselves being forced into a Jubilee for ALL THE PEOPLE this time, and not THEMSELVES
          .
          It would be their penance for their sins?

          or maybe not, but ironically, this is the second time today that this popped into my head. Earlier, reading about the Anwan Bros., the silence of the mainstream media and the FBI report that could possibly implicate MANY of both parties sitting in Congress and the Senate for their knowledge and participation in their glutenous acts of greed!

          It may possibly be the reason that Hillary was not ‘selected’ and the Jesuit trained Trump was! To Clean out and drain that sinful swamp of slime who broke the Golden Rule and thought they too could be ‘gods’.

          Not sure at all if the source below is real or fake…. then again in today’s climate wth knows what is real or fake news anymore!

          https://www.liberalforum.org/topic/217793-fbi-agents-suspect-somebody-in-congress-tipped-off-the-awans/

  2. Just like commbank’s huge fine for money ‘laundering’ via ‘illegal’ money movement in their ATMs..

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