View Full Version : China debt excessive?

Ag gnostic
10-10-2011, 12:56 PM

What do you make of this? This seems pretty bad to me. In fact, it looks like a bubble that's about to pop. Notice the mention 70% intrest rates.

10-10-2011, 01:24 PM
Lots of waste in China, makes our government look almost competent. Big risk IMHO is that China does not bail out the states and cities, instead choosing to stiff investors and lenders. But these guys totally understand the "kick the can down the road" game.

10-10-2011, 01:50 PM
I already mentioned in previous silver/gold threads that China is not what it seems tobe. They will be the biggest threat and I am sure will go bankrupt. China is cooking up its books. There is no prince charming on a white-horse coming to save the world.

10-10-2011, 01:57 PM
China has some big problems to face. All this 'capitalism' looks great from the outside (you see what they want you to see), but there are some serious problems inherent in nature of the system. So many places where the usual checks and balances (of western capitalism) are lacking that it's frightening.

Is your river drying up as a result of local industry? Perhaps complain to your friendly local government official? Except that they've been given targets to hit for industry in the area and your wishes count for nothing. They don't aim to please you, they aim to achieve the state's goal.

Think about the mess western banking systems are in, then multiply it by 1000 and you'll be somewhere close to China's. :D Except that the state just covers up and pays for any errors (funding zombie banks etc).

10-10-2011, 02:12 PM
China invented paper money. They know how the game is played...:eek:

10-10-2011, 02:26 PM

To anyone still believing that capital markets around the world express something other than government policy, the latest news out of China may come as a surprise: "Beijing will buy more shares in China’s biggest banks, in an expression of support for the beleaguered stock market and most concrete state action to date to shore up confidence in the slowing economy." The FT reports further: "Central Huijin, the domestic arm of China’s sovereign wealth fund, will buy the shares to help stabilise the pillars of the country’s financial system, the official Xinhua news agency said on Monday. Coming as the Chinese stock market closed at a 30-month low, the move was the strongest sign that Beijing wants to engineer a restoration of confidence in share prices and the economy. It paid instant dividends with a rally in the final minutes of trading on Monday." And there you have it: stocks are now nothing more than a means for governments to validate their "success" in something, since they have no more control left over either employment or inflation, or public expression of affection with capitalism as per #OWS. So why not ramp up the DJIA to 36,000? Granted that will happen as all global currencies get terminally davalued against gold, but so what - after all that only thing that matters now is whose stock market is the biggest.


10-10-2011, 02:48 PM
cost of doing business by pegging renminbi (or yuan) to the dollar.
Now the contest of whos stock market is the prettiest:D