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by adventured
3736 days ago
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> There is good and there is bad debt/investment. If debt is used to finance productive investments then a high debt to GDP multiple is not a problem, it is in fact a sign of health. We already have the answer on that one, and have for a long time. The return on debt - the growth derived from taking on increasing amounts of debt - for China has plunged the last ten years. At this point, taking on more debt accomplishes absolutely nothing in regards to growth. They've saturated their ability to grow using those methods. Their GDP per capita can never match the equivalent of Japan today. That's implying a Chinese economy that is nearly the size of the entire global economy today. That's the same kind of hype and absurdity the article is talking about. Where is the next $40 trillion in GDP going to come from? They're struggling to grow their economy at all today (and yes, the 6.x% figure is pure fiction), while taking on tens of trillions in new debt. If they can't grow their economy today, with that much debt financing, when will they be able to? The answer is: the party is long over, the only thing left now are consequences to all the bad choices that led to China becoming the world's most indebted nation in record time. > These numbers are off by a factor of 10. Support your position then. |
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Yes.
> Support your position then.
The Business Insider article mistankenly says pr. year where it should have said pr. month.
Sharetea must have somehow stumbled on this as he introduces a "." in the quote so 85 USD becomes 8.50 USD.
The correct numbers are in the report:
http://demandinstitute.org/demandwp/wp-content/uploads/2015/...
"Only 12% reported monthly household income of more than 20,000 yuan ($3,200), or $85 a day."
Where group that is referred to is the group of "connected consumers". The group is 368 mio. Chinese pt.