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Trump Tariffs NOT China's Biggest concern. Chinese Shadow Banking Bigger. What is Shadow Banking ?

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On 10/9/2019 at 11:22 PM, Jabbar said:

* CHINESE TOTAL DEBT TO GDP = GREATER THAN 300%

* CHINESE SHADOW FINANCING OVER 9 TRILLION DOLLARS

If you remember the U.S. 2007/2008 worldwide economic crash that started in the U.S. Banking System, that's what could happen again, only caused this time by different actors as in the Chinese Communist Party and the People's Liberation Army.

In 2000 thru 2007 the U.S. packaged loans and mortgages and sold them to "non-bank" entities.  Got them off the Banks balance sheet. Mortgage Backed Securities (MBS) , Asset Backed Securities . Economy was going Great.  Great returns until everything goes south.

Like the U.S. Banks the Chinese Banks (owned or partially owned by Chinese Communist Party) have amassed NINE TRILLION DOLLARS OF OFF BALANCE SHEET FINANCING, "SHADOW BANKING".  YES NINE TRILLION DOLLARS. 

On top of that Chinese TOTAL DEBT IS 330 % OF GDP !

The doubters say the Chinese government will bale out their banks. After all they own most of them. China bailed out two banks a few years back to the amount of 45 Billion dollars.  

That's tiny compared to current total debt. China has over one Trillion dollars in cash reserves. (9 Trillion dollars Shadow Financing! ).

Well China is in a similar precarious position.  We are talking over 9 Trillion U.S.dollars in "Shadow Banking" loans ! Yes 9 Trillion dollars.

China outstanding Debt/Loans to GDP ratio is 3.2 to 1.0 

Where U.S. total Debt to GDP ratio is 1.2 to 1.0 The U.S. not over leveraged.

Even with China's One TRILLION in reserves that pales compared to NINE TRILLION OF SHADOW OFF BALANCE SHEET BANK LOANS.

Could the world see repeat 2007/2008 ?

Your China is not invisible.

Tariffs , Hong Kong , Shadow Banking .

Maybe , China should play fair with U.S. 

China banish NBA over a tweet.  That is what the world is dealing with.  

Now even partial trade deal looks unlikely until after election.  Thank your Democratic Party.  

What if U.S. Investment Banks did stop Financing People's Liberation Army's Banks, Companies and Economic Growth and military build up.

https://www.nytimes.com/2019/10/03/opinion/china-xi-jinping.html

Oil trades in range 

Your are wrong. The true size of the US national debt is 222 trillion dollars.

https://www.zerohedge.com/news/2019-03-29/true-size-us-national-debt-including-unfunded-liabilities-222-trillion-dollars

You can track the US National debt in real time here

https://usdebtclock.org/

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5 hours ago, Hotone said:

Your are wrong. The true size of the US national debt is 222 trillion dollars.

https://www.zerohedge.com/news/2019-03-29/true-size-us-national-debt-including-unfunded-liabilities-222-trillion-dollars

You can track the US National debt in real time here

https://usdebtclock.org/

222 Trillion. LOL that's funny.

We are talking two different things.  When using comparative statistics don't drag in extraneous stats, especially controversal one like unfunded liabilities.  

 

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(edited)

1 hour ago, Jabbar said:

222 Trillion. LOL that's funny.

We are talking two different things.  When using comparative statistics don't drag in extraneous stats, especially controversial one like unfunded liabilities.  

 

Unfunded liabilities are debts - Detroit went bankrupt because it couldn't fund it's liabilities.  European countries have much, much higher taxes than the US, because unlike America, their pensions and healthcare services are funded.  In my country, there is no free pension or free healthcare, but there is a compulsory savings scheme. 

You must realise that many Americans don't have savings (https://www.cnbc.com/2019/01/23/most-americans-dont-have-the-savings-to-cover-a-1000-emergency.html).  When they retire, many will draw upon those liabilities which are unfunded by the US government.

Edited by Hotone

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(edited)

2 hours ago, Hotone said:

Unfunded liabilities are debts - Detroit went bankrupt because it couldn't fund it's liabilities.  European countries have much, much higher taxes than the US, because unlike America, their pensions and healthcare services are funded.  In my country, there is no free pension or free healthcare, but there is a compulsory savings scheme. 

You must realise that many Americans don't have savings (https://www.cnbc.com/2019/01/23/most-americans-dont-have-the-savings-to-cover-a-1000-emergency.html).  When they retire, many will draw upon those liabilities which are unfunded by the US government.

You are in over your head. LOL

Conflating different economic terms, issues, statistics and concepts to try to dispute the facts.  

CHINA Facts

* 9 Trillion dollars shadow financing

* Total  Debt / GDP over  3:1

Get back to the books.

How much did you pay for that MBA ?

 

Edited by Jabbar
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(edited)

2 hours ago, Jabbar said:

You are in over your head. LOL

Conflating different economic terms, issues, statistics and concepts to try to dispute the facts.  

CHINA Facts

* 9 Trillion dollars shadow financing

* Total  Debt / GDP over  3:1

Get back to the books.

How much did you pay for that MBA ?

 

I was watching a talk by Aberdeen Standard Investments - the largest active manager in the UK and one of the largest in Europe.  The speaker pointed out the American unfunded liabilities and the debt clock. Previously, I didn't want to post the video here because it is alarmist:
https://youtu.be/3WclYu5l4G0

Btw, the total US debt not counting unfunded liabilities is 70 trillion dollars:
https://www.cnn.com/2019/07/17/investing/united-states-debt-risks/index.html

Anyway, how old are you? Please don't resort to stupid comments because it is juvenile behaviour.

Edited by Hotone
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(edited)

16 hours ago, Hotone said:

I was watching a talk by Aberdeen Standard Investments - the largest active manager in the UK and one of the largest in Europe.  The speaker pointed out the American unfunded liabilities and the debt clock. Previously, I didn't want to post the video here because it is alarmist:
https://youtu.be/3WclYu5l4G0

Btw, the total US debt not counting unfunded liabilities is 70 trillion dollars:
https://www.cnn.com/2019/07/17/investing/united-states-debt-risks/index.html

Anyway, how old are you? Please don't resort to stupid comments because it is juvenile behaviour.

Wrong again. Now 77 Trillion Debt.  LOL.  Can't stop laughing.

Did you spend your whole day on Google to find some unfunded liabilities propaganda ?  We're not even remotely talking about unfunded liabilities. Start an unfunded liability discussion.  I'll see you over their.

The topic is SHADOW FINANCING 

THE 9TRILLION DOLLARS OF SHADOW FINANCING. THIS

Why is every bond fund in the world buying U.S. bonds.

The U.S. will do just fine. 

Your portfolio must have a large number of Chinese stocks.  Sorry.  I know the thought it could get worse is scary.

Would you kindly go bother another poster with your convoluted economic theory.  I'm done.  

Why all the hate on U.S. ? You hate them, because you ain't them. 

Edited by Jabbar
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