The western media like to spread fears about China's debt problem and they do this by quoting China's total debt in their analyses. The western media had been predicting the China collapse for a few years already but China grew stronger economically instead.
Total debt = National debt + Corporation debt.
China's total debt = USD$4.3T (national debt) + USD$25.6T (corporate debt) = USD$30T
China GDP = USD$11T
Total debt to GDP = 270%
Foreign reserve = USD$3T
https://en.wikipedia.org/wiki/National_debt_of_China
USA's total debt = USD$19.85 (national debt) + USD$29T (corporate debt) = USD$49T
USA GDP = USD$18T
Total debt to GDP = 270%
Foreign reserve = USD$116B
However, McKinsey estimated that USA total debt to GDP ratio was at 331%.
https://socioecohistory.wordpress.com/2016/01/29/the-29-trillion-corporate-debt-hangover-that-could-spark-a-recession/
https://en.wikipedia.org/wiki/List_of_countries_by_foreign-exchange_reserves
https://www.bloomberg.com/graphics/2016-china-debt/
The western media like to focus on China's total debt vs USA's national debt when making a comparison between these 2 countries. The actual fact is both countries have similar total debt to GDP ratio. However, most China total debt is locally funded whilst USA total debt is foreign funded. This will make a big difference during any financial crisis as foreign investors will force you for repayments compared to local investors. Furthermore, China has USD$3T in reserves compared to USD$116B in USA and China's economy is growing at twice of USA's. Therefore, China's economy will be bigger than USA's in the future.
http://sg-stock.blogspot.sg/search?q=china+economy+will+be+bigger+than+usa
Showing posts sorted by relevance for query china economy will be bigger than usa. Sort by date Show all posts
Showing posts sorted by relevance for query china economy will be bigger than usa. Sort by date Show all posts
Friday, May 26, 2017
Friday, May 31, 2019
PM Lee has made a judgment error on China again!
https://www.channelnewsasia.com/news/singapore/shangri-la-china-face-off-not-strategic-inevitability-pm-lee-11585858
PM Lee has made a judgment error on China again. No wonder he keeps siding with the USA because he belittles China too much.
Yes, China cannot take down the US but the US also cannot take down China. Just look at Russia!
The US cannot take down Russia even though the US economy and military prowess are much bigger. Why? This is because both countries have large nuclear arsenals and going to war with each other is self-annihilating. It will be an internecine war with China too.
China's economy will overtake the US in less than a decade if China GDP is still growing at the current rate. The earliest will be in 2025 and the latest by 2030. If we use PPP to measure the GDP, China is already the largest GDP in the world as compiled by PWC.
http://sg-stock.blogspot.com/2017/02/china-is-worlds-largest-economy-based.html
China is just as resilient as the US because it has the support of 1.4B people. The large local market size is able to revitalize China economy when there is an economic war with the US.
http://sg-stock.blogspot.com/2019/04/china-is-consuming-economy-not.html
ECB's simulation also showed that China would win the trade war. How did our PM Lee derive his conclusion?
http://sg-stock.blogspot.com/2018/09/ecb-simulation-showed-that-china-would.html
Look like our PM Lee has lost touch with the China situation. I'm very worried about SG future now after reading his speech.
PM Lee has made a judgment error on China again. No wonder he keeps siding with the USA because he belittles China too much.
Yes, China cannot take down the US but the US also cannot take down China. Just look at Russia!
The US cannot take down Russia even though the US economy and military prowess are much bigger. Why? This is because both countries have large nuclear arsenals and going to war with each other is self-annihilating. It will be an internecine war with China too.
China's economy will overtake the US in less than a decade if China GDP is still growing at the current rate. The earliest will be in 2025 and the latest by 2030. If we use PPP to measure the GDP, China is already the largest GDP in the world as compiled by PWC.
http://sg-stock.blogspot.com/2017/02/china-is-worlds-largest-economy-based.html
China is just as resilient as the US because it has the support of 1.4B people. The large local market size is able to revitalize China economy when there is an economic war with the US.
http://sg-stock.blogspot.com/2019/04/china-is-consuming-economy-not.html
ECB's simulation also showed that China would win the trade war. How did our PM Lee derive his conclusion?
http://sg-stock.blogspot.com/2018/09/ecb-simulation-showed-that-china-would.html
Look like our PM Lee has lost touch with the China situation. I'm very worried about SG future now after reading his speech.
Thursday, February 9, 2017
China is the world's largest economy based on PPP.
China is expected to overtake USA's economy in nominal GDP by 2030.
http://statisticstimes.com/economy/projected-world-gdp-ranking.php
http://statisticstimes.com/economy/projected-world-gdp-ranking.php
China's economy will be 50% bigger than USA in the year 2050 (see below).
Statistics from PWC
Whose side do you want to be on? USA or China?
Subscribe to:
Posts (Atom)
.jpg)
