China’s real national debt: $46 trillion, 330% of GDP


While we are concerned with our mounting debt, apparently China is having its own financial issues. Recall how President Reagan outspent the Soviet Union in defense spending to their detriment as they attempted to keep up with us. It looks like things are not so swell over China way. With China, they have a population of over one billion. Should we be concerned about a restless unhappy population? I am no expert on China by a long shot. Will it end like the Soviet Union if the Chinese can’t get their financial ship in order? Will they become more aggressive if there is a financial crisis? Zero Hedge goes on in the link below regarding the censorship China is implementing concerning the bad financial news.



China’s Shadow-banking system is collapsing (and with its China’s economic-fuel – the credit impulse), it’s equity market has become a slow-motion train-wreck, its economic data has been serially disappointing for two years, and its bond market is starting to show signs of serious systemic risk as corporate defaults in 2018 hit a record high.

But, if you were to read the Chinese press, none of that would be evident, as The New York Times reports a government directive sent to journalists in China on Friday named six economic topics to be “managed,” as the long hand of China’s ‘Ministry of Truth’ have now reached the business media in an effort to censor negative news about the economy.

The New York Times lists the topics that are to be “managed” as:

  • Worse-than-expected data that could show the economy is slowing.
  • Local government debt risks.
  • The impact of the trade war with the United States.
  • Signs of declining consumer confidence
  • The risks of stagflation, or rising prices coupled with slowing economic growth
  • “Hot-button issues to show the difficulties of people’s lives.”

The government’s new directive betrays a mounting anxiety among Chinese leaders that the country could be heading into a growing economic slump. Even before the trade war between the United States and China, residents of the world’s second-largest economy were showing signs of keeping a tight grip on their wallets. Industrial profit growth has slowed for four consecutive months, and China’s stock market is near its lowest level in four years.

“It’s possible that the situation is more serious than previously thought or that they want to prevent a panic,” said Zhang Ming, a retired political science professor from Renmin University in Beijing.

Mr. Zhang said the effect of the expanded censorship strategy could more readily cause people to believe rumors about the economy. “They are worried about chaos,” he added. “But in barring the media from reporting, things may get more chaotic.”

More at Zero Hedge

17 Responses to “China’s real national debt: $46 trillion, 330% of GDP”

  1. the unit Says:

    Theory of pebbles (money) representing trading bread for a chicken worked good and vice a versa…’til the other party found they were clutching your roosters testicles in their hand at trading time.
    Dangerous times, need now for …


  2. petermc3 Says:

    I too am no financial wizard so for what it’s worth, two observations: If and when their capitalism experiment collapses it will reinforce, for their purposes, the glories of the communist system. Rice goes a long way towards feeding the starving masses.
    Come 2020 the republicans will have lost the Oval Office as well as both Houses. Trump’s trade war will be a thing of the past. A rather simplistic overview but the democrats out of control unopposed spending on entitlements for both legal and illegal immigration, runaway environmental spending and regulations as well as handcuffing the american economy with rules and mandates can only help to weaken us and threnghten our “trading partners”. And we should plan on seeing Christian bakers making wedding cakes for the LGBTQRSTUVWXYZ communities….what SCOTUS, impeachment will solve that fly in the ointment., Savevthe children!

    Liked by 2 people

  3. the unit Says:

    I’m not well versed in economics, other than for me…don’t spend what I don’t have or can afford to borrow and pay back.
    I always read our national debt comes from borrowing from China, who will one day have to be paid back.
    So where in the world and from who is China borrowing from for their debt to be 330% of GNP?
    Oh, I saw in the link…” EM central bankers begging the Fed to halt its tightening, or else.” Fed just types out more digital money to loan at zero interest.
    Stein’s Law coming.

    Liked by 2 people

  4. Mustang Says:

    I’m really not an economist, but I did stay at a Holiday Inn Express last night. I am always curious about our analysis of East Asian economies, particularly about such conclusions as “consumer confidence” because it appears that these analysts apply their understanding of western culture to those of …in this case, China. First, the debt to income ratio in China is far different from our own. Chinese people do not have much in the way of disposable income. This means that they have little choice in the matter of purchasing power. So, to say that the Chinese consumer has little confidence in their economic programs borders on the ridiculous. Does anyone think that the Chinese government cares whether their consumers have confidence, particularly when their purchasing power is so limited? My guess is that if the Chinese consumer is concerned about anything at all, it would be the price of staples … food, for example.

    One final observation about China: you can put lipstick on a pig but it’s still a pig. The Chinese people can call their leader a president if they want, but in fact he’s still an emperor. You can call the legislative body a congress, but it is the same collection of mandarins that existed 1,600 years ago. Yes, it is true that there are some “free market” aspects to the Chinese economy, but behind the scenes, the government is controlling its industries. This is the definition of fascism. So when we compare the Chinese economy to those of western states, it’s really comparing apples to oranges. We should also recall that to the Chinese, economic competition is about the same as open warfare. Slitting throats is what Chinese businessmen have always done; it’s what Imperial China has always done. We should wonder, then, if these analyses are correct, what is China likely to do in the near future.

    Me? I’m stocking up on Top Ramen noodles.

    Liked by 2 people

  5. Linda Says:

    I guess Communism/Socialism doesn’t work. wink

    Liked by 2 people

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