China’s Deflationary Spiral Is Now Entering Dangerous New Stage

[F-22Raptor]

You are not including Federal Government, State and Local Government, Households & Nonprofit Organizations and Financial Business debt lol

The Fed - Financial Accounts of the United States - Z.1 - Current Release

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

Try again

 

[FHN]

So u tell me leverage debt is not debt?? Try again

 

[F-22Raptor]

So u tell me leverage debt is not debt?? Try again

This is the US Federal Reserves Assessment of total US debt. You’re NOT going to find a more official source.

 

[lightning f57]

Since the economic crisis of 2008, the Fed has pumped around $8 trillion worth of greenbacks into the economy, this creates an asset inflation.

In last 10 years or so both countries have added around 10 trillion to their GDP, both have huge total debt, going by that chatgbt figures its quite similar. China has deflation pressures US inflation pressures along with fears of a recession.

Both countries have their issues, not sure what's to cheer about here.

 

[FHN]

Us total debt is 102 trillion all u have to do is a quick google search lol

https://www.usdebtclock.org/

 

[FHN]

We are not even including leverage total is 735 %. at the end of the day china external debt is only 2.4 trillion . China doesn't owe much to the world lol

 

[FHN]

US External Debt: % of GDP, 2003 – 2024 | CEIC Data

US External Debt accounted for 95.0 % of the country's Nominal GDP in 2023, compared with the ratio of 95.3 % in the previous year.

www.ceicdata.com

US external debt is 95 percent of gdp

 

[FHN]

40% of Chinese government debt is owed to itself, not to private bankers… this debt can be cancelled at any time without penalty

 

[Mista]

US now has official debt/GDP ratio of 736%.

Dataset Search

datasetsearch.research.google.com

In 2023, the total assets of banks in China amounted 417 trillion yuan around 60 trillion us dollars.

Either you're being ignorant or dishonest.

US Total Debt: % of GDP, 1951 – 2024 | CEIC Data

US Total Debt accounted for 735.9 % of the country's GDP in 2024, compared with the ratio of 737.1 % in the previous quarter.

www.ceicdata.com

Including the gross debt of financial institutions is silly lol.

When I deposit $1 in the bank, in accounting terms, the bank now has $1 of assets (cash) and $1 of liability (owed to me). The increase in liability doesn't mean the bank is insolvent or at greater risk of defaulting, because it is fully backed by assets.

When I deposit my cash, both the gross assets and gross liabilities of the bank rises.
When I withdraw my cash, both the gross assets and gross liabilities of the bank falls.

The higher a country's savings rate is, the higher the gross debt of financial institutions.

That's why the Total Debt as % of Nominal GDP in the very misleading, with many countries above >500%.



You have Switzerland with AAA credit rating with 900%+ gross debt, while Turkey has 200%+ gross debt.

Now, China isn't included in the table above. But if you say that Chinese banks have an asset of ~USD60tril, it also implies that they have a gross liability of ~USD60tril owed to Chinese savers. This means that just Chinese banks have a gross liability of >300% of GDP. Again, this doesn't mean that China is insolvent.

That's why no one uses this figure to compare a country's solvency. Most people compare using just government debt, or the debt figures provided by F22 (government + household + non-financial corporate). But even this figure is flawed, because it doesn't look at the asset side of the balance sheet. A large company like Google may have more debt than a small company, but that doesn't mean it's at greater risk of insolvency. You have to consider cash flow, assets, interest rates etc.

List of countries by total wealth - Wikipedia

en.wikipedia.org

Anyway, an account created just today... You're probably just a dupe/troll lol.

 

[FHN]

Well if you are only comparing government debt then 35 is way more than 16 trillion. Then don't bring up total debt to GDP ratio lol

 

[FHN]

They only show you how much debts that China has but they didn't show you the income of China could easily earn back to cover the debts and re-investment into the economy. U know china investment goes into high tech industries while cannot be said about the United States lol

 

[FHN]

Taking debt for increasing production is different than taking debt for increasing consumption. Building productive assets bring future value to the economy unlike debt-based consumption. China and US are in the opposite ends of their development cycle.

 

[FHN]

That number is misleading though

Debts ought to be compared against assets, that's normal accounting practice. An enterprise is fine as long as it has more assets than debts.

China has tons of assets. All the national banks, all the infrastructure. China is also the largest lender in the world 1.3-1.5 trillion in US dollars and 3.5 trillion in foreign reserve. Most banks in China are state owned banks including the 4 largest in the world. With china high saving rates money can be repaid back easily. External debt is only 2.4 trillion .

 

[Dalit]

Spot on!

No need for you to cheerlead.

 

[Dalit]

Since the economic crisis of 2008, the Fed has pumped around $8 trillion worth of greenbacks into the economy, this creates an asset inflation.

In last 10 years or so both countries have added around 10 trillion to their GDP, both have huge total debt, going by that chatgbt figures its quite similar. China has deflation pressures US inflation pressures along with fears of a recession.

Both countries have their issues, not sure what's to cheer about here.

The Americans have like their Indian ally developed a bad habit. Point fingers and pretend everything is fine on this side of the fence.