China’s Debt Bomb: No One Really Knows The Payload

https://i0.wp.com/2oqz471sa19h3vbwa53m33yj.wpengine.netdna-cdn.com/wp-content/uploads/2016/05/china-debt-bomb.png

Courtesy of: Visual Capitalist

 

No one knows if it’s a hand grenade or a nuclear warhead…

The ramp up in Chinese debt accumulation has been a leading concern of investors for years. The average total debt of emerging market economies is 175% of GDP, and skyrocketing corporate non-financial debt has launched China far beyond that number.

The real question is: by how far? Continue reading

$1,001,000,000,000: China Just Flooded Its Economy With A Record Amount Of New Debt

https://i0.wp.com/www.zerohedge.com/sites/default/files/images/user5/imageroot/2016/04/09/20160415_TSF.jpg

 

When China reported its economic data dump last night which was modestly better than expected (one has to marvel at China’s phenomenal ability to calculate its GDP just two weeks after the quarter ended – not even the Bureau of Economic Analysis is that fast), the investing community could finally exhale: after all, the biggest source of “global” instability for the Fed appears to have been neutralized. Continue reading