Japan's Debt Problem Visualized - Not Good

[Mr Khan]

haxxiy said:

Miguel_Zorro said:

Agreed, the US is screwed if they stay on their current path.

While the Chinese central government has assets, they have much more debt than people realize.  The different is that China's debt is buried in local governments and most notably in state-owned enterprises.  They have trillions and trillions of debt.

http://www.nytimes.com/2011/07/07/business/global/building-binge-by-chinas-cities-threatens-countrys-economic-boom.html?pagewanted=all&_r=0

http://www.creditwritedowns.com/2011/09/jim-chanos-china-has-tons-of-contingent-debt-via-state-owned-enterprises.html

Just goes to show their communist government is the closest thing nowadays to good old european fascism, who basically behaved that way towards corporations. It could be trouble one day, but I dare to say that will likely be their saving grace, which is vengefully ironic on an evil sort of way.

The other problem is that China still has one great hell of a lot of modernization to go through. The prosperity and the modernized development is basically concentrated in the easternmost 300 miles of the country, with vast swathes of the country still no further ahead than they were in the 50s. That's going to catch up to them.