China’s Debt Surpasses Europe for the First Time
https://www.visualcapitalist.com/charted-us-and-china-debt-surges-past-europe/
Posted by Grabs_Diaz
China’s Debt Surpasses Europe for the First Time
https://www.visualcapitalist.com/charted-us-and-china-debt-surges-past-europe/
Posted by Grabs_Diaz
16 Comments
Man. China leaves us behind at every metric.
It doesn’t matter who has debt. If american economy debt-crashed tomorrow europeans would still be in deep shit.
and that´s the one we know of. Can´t imagine how big is the real one.
38 tril jesus. It was like 30 just few years ago.
What really matters is what kind of debt and will the investment be fruitful
If you count as % of GDP, [that already happened in 2022 according to BIS](https://data.bis.org/topics/TOTAL_CREDIT/BIS,WS_TC,2.0/Q.CN.C.A.M.770.A?additional_ts=BIS%2CWS_TC%2C2.0%255EQ.XM.C.A.M.770.A), and in 2019 [according to IMF](https://www.imf.org/external/datamapper/datasets/GDD).
Current EU debt is good. What needs to change is who’s at debt. Highly indebted countries, like Italy, need to reduce theirs, while low debt countries need to increase theirs. A well invested loan is very useful.
At least they will never overtake the US.
USA, USA, USA oh wait this isnt going to go well is it. Its crazy how short sighted humans are. Sigh
USA still number one by magnitudes! Woo! USA, USA, USA!
Well, I feel like there is some context missing here. Leveraging debt for investments is good, maybe that what’s China is doing ? Possibly.
But for sure, Europeans countries are just financing a cost of living they can’t sustain. There is no investments, just a slow death, and we are so behind USA and China from a business perspective.
If you include communal debts or state level debts China is actually insanely in debt, even more than the US itself.
Does this include the debt from the local governments as well? That’s where most of Chinas public debt is in.
Strange how much discourse there is globally about US debt, yet how little about China’s, considering they seem to be on track to surpass it within less than a decade.
This doesn’t seem sustainable.
Isn’t a majority of Chinese debt in local government? Is this accounted here?
The problem is not about how much debt, it is about how well spent the debt is in order to improve economic activities, help push potential industries. It will not help if the large amount of debt is being spent on to foot the bills for pensioners or pay due bills, which is the case of Germany with the 500b debt brake