Asean GDP all set to surpass the UK this year after Brexit

[randomradio]

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There are two types of debts. One debt is where you borrow to fund non revenue generating activities (such as buying a car, fighting wars, etc). The other one is to use the debt as an investment which will generate income. In the case of China, it is the latter case.

Unfortunately, it is taking $4 of debt to make $1 of growth. So the income being generated is not sufficient to pay back the debt.

It seems that you are not aware that China (Japan, Germany and SK) are net creditor nations but US and most other countries are net debtor nations. India is in this list but you have a manageable debt, I hope.

I don't think you understand the nuances of what that means. A creditor nation means money is leaving your country. A debtor nation means money is coming into the country.

China is only a middle income country and money is leaving. This explains your situation. People in your country who know about your economic condition are taking away their yuans and purchasing dollars.

That's why your govt is trying to put a stop to money leaving the country.
http://www.reuters.com/article/uk-china-economy-capitalflows-idUSKBN13O1E2

https://www.ft.com/content/2511fa56-b5f8-11e6-ba85-95d1533d9a62

What this means is rich Chinese people and companies are finding other countries as viable investment destinations than China. This is not good news for China at all, hence why CCP is trying its best to stop the outflow.

So being a creditor nation when you are not a developed country is a bad thing. Other countries like Japan are creditor nations because growth in their own country is so small that their money gets better returns in other countries. Definitely not a good sign for China.

 

[Jlaw]

@Shotgunner51 You r absolutely right. This forum has very few people who can understand finance in the global picture.

Some group only understand PPP economics.

 

[terranMarine]

The supapowa spend all its money buying arms to race with China.

Indians are MAD if they think they can have an arms race with China. Looks like many Indians will have to go outdoors for .... for a long time even after achieving double digit growth.

 

[Realtalk108]

India's nominal GDP is stuck between 2-3 trillion because of exchange rate fluctuations. It will be like that for a long time. In PPP terms it's about 8 trillion vs China's 21 trillion. I think we are doing fairly well.

 

[AndrewJin]

Some group only understand PPP economics.

I genuinely hope they could buy our DJI drones with their magic PPP money in a world of hysteria.

 

[GS Zhou]

I genuinely hope they could buy our DJI drones with their magic PPP money in a world of hysteria.

I don't think DJI will accept PPP currency. Pay with real currency please!