China Debt Greatest Risk To Australia says RBA


[quote=”Rattlesnake” post=6597][quote=”TradersCom” post=6595]Yes Rattlesnake the debt is massive and who knows what the true number is when you look at the shadow banking scenario[/quote]

Agree, and very true about the shadow banking system in China.

IMHO in a worst-case-scenario, should a worst-case-scenario happen to occur at some point in the future, total government debt for China is still low enough to where Beijing could bail out the major Chinese banks, but that leaves the situation of what happens to all the Chinese shadow banks and NON-financial business sector debt in China. Since 2012 have kept track of debt in China by category (aka government sector debt, household debt, and business sector debt), and when looking at time series graphs of amount of NON financial business sector debt on a year-over-year basis in China for the past 11+ years it’s amazing how much non-financial business sector debt has increased in China in the past 11+ years.[/quote]

Its astonishing really and yet promoted by the west so we couldn’t lower our living standards – the amount of foreign in that shadow debt is huge – of course much of it is straight out laundering but I wonder how much is comingled or even ponzi?

I think China was wise with their last PBoC chief and he isn’t ignorant of it – good points on worst case.

Then we have Italy ….