shuttler
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then india will be sunken deeper below ground level
India Shining? Or the Greece of Asia?
- Thread starter Hafizzz
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then india will be sunken deeper below ground level
there is a temporary paralysis of govt . thats why this issue. once decision making picks up we will leave china eating the dust we leave behind zooming ahead of them. china will soon be in a place where they wont be able to do anything even if they wanted. trust me indian democracy will work well in the end
shuttler
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you people never seem to get bored of these! I think that has been the thinking of massive delusional indians since the Nehru days! When did he die?
Roll in deep
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Indians is really freak, even when they live in slums, they still want to laugh at others.
Amolthebest
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Translate it in English then we speak
and then we may even possibly go down to chinas level
living in slums and being happy is better than living in those screwed up HDB working 8am to 9pm , being tense abotut job security, eating crappy makan at hawker center out of polystyrene box and getting colon cancer . yes slum dwellers are happy without having much and you guys are kiasu living in wealth
Roll in deep
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That's why you are almost the poorest of the world.
but much more happy.
shuttler
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read Moody's report. they are better than sleeping pills for you these days!
haha indian escapism at work! amen!
say what you want , its just irritating for you guys to think tht indians are poorer but happier and still able to lead a fulfilling life inspite of problems. thats because of the freedom of choice we have .
KRAIT
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Straight from the heart...nice one man.
but 'cuts like a knife'Straight from the heart...nice one man.
Archie
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How Will China Pay Off Its Debt?
Heres some terrific news about Chinas economy: at the end of last year, the debt-to-GDP ratio of the Chinese government, the key measure of its fiscal sustainability, stood at 16.3%. Thats an improvement from the already impressive 17% at year-end 2010.
Based in large part on Beijings low debt load, the Economists wiggle-room index, which ranks economies on their ability to afford stimulative measures, assigns a great rating to China. Of 27 emerging nations, only petroleum-blessed Saudi Arabia and Indonesia look stronger.
China does not have as urgent a need to bolster growth as other newly developing countries, the Economist suggests, and in any event it has lots of space to wiggle. Chinas ample room for easing supports the case for a soft rather than a hard landing of its economy, the publication says.
All this sounds wonderful, but none of it correlates with the facts. The 16.3% calculation excludes Beijings hidden liabilities. Once you add them in, Chinas debt-to-GDP ratio increases to somewhere between 90% and 160%. And if you believe Beijing has been overstating its GDP recentlyit has, at least starting from the last quarter of last yearChinas ratio approximates Greeces 164%.
Chinas economy, despite the Economists assessment, is already landing hard. Januarys results were dismalthe economy looks like it may even have contracted last monthand there will not be much improvement until the summer, if then. If there is no marked uptick this year, Beijing faces difficult choices because, as the ghost city phenomenon indicates, there has been a gross misallocation of capital since the end of 2008.
What are Beijings choices? First, central government technocrats could force the banks to absorb losses. At first glance, it appears the banks could afford substantial write-offs. The industrys non-performing loan ratio was 0.96% at the end of last year, down from an already unbelievable 1.14% at the end of 2010. Yet the central government will not force banks to write off large quantities of loans because the year-end 2011 ratio does not reflect the real state of bank balance sheets. The Ministry of Finance could again recapitalize the banks, but that may not be feasible. The central government has yet to clear all the bad loans from the big bailout at the end of the 1990s. Chinas hidden liabilities include warehoused loans from that era, which Holland estimates amount to 7.5% of GDP.
So there is no or minimal growth, the banks are not strong enough to shoulder significant losses, and the central government is weighed down by 1990s-era bad loans. What is a central government technocrat to do?
Beijing can take the path traditionally followed by other governments around the world and inflate its way out of the problem, Holland wrote on Friday. The general downward trend in consumer inflation looks to offer some flexibility, but pricesand especially those for foodare going up much faster than the numbers issued by the Bureau of National Statistics indicate.
It would be easy to create more inflation. The renminbi has strengthened recently, but most analysts believe Beijing will end the upward movement in the next few months, in large measure to rescue ailing export factories, to make Chinese products cheaper on world markets. The inevitable result of a depreciating currency would be inflation, which would help the central government erode the value of its mounting debt.
Of course, Chinas citizens, who accumulated 37.0 trillion yuan in household deposits by the end of last month, would be hurt by this tactic, but for more than three decades Beijing, by fixing deposit rates at abnormally low levels, has maintained an economic model that has punished them to help borrowers. Low deposit rates would depress consumption by keeping money out of the hands of citizens, but Chinese leaders have never been serious about building a consumer economy. In no economy today does consumption play a lower role.
And in a China where everything is political, there is one more factor to consider. Communist Party leaders are extraordinarily sensitive to inflation due to its potential to create widespread social unrest.
So, yes, there would be many disadvantages to using inflation to solve Chinas debt situation, but at this moment it looks like the least bad option for Beijings out-of-solutions technocrats. The Economist may believe they once had lots of room to wiggle, but their choices are all unpalatableand they are narrowing fast.
How Will China Pay Off Its Debt? - Forbes
So In reality China is the Greece of Asia , when the time comes to pay off that 164% Debt , all that 3 Trillion USD reserves will turn into 7 Trillion Loans
Pakistan = Beggar on steroids
Heres some terrific news about Chinas economy: at the end of last year, the debt-to-GDP ratio of the Chinese government, the key measure of its fiscal sustainability, stood at 16.3%. Thats an improvement from the already impressive 17% at year-end 2010.
Based in large part on Beijings low debt load, the Economists wiggle-room index, which ranks economies on their ability to afford stimulative measures, assigns a great rating to China. Of 27 emerging nations, only petroleum-blessed Saudi Arabia and Indonesia look stronger.
China does not have as urgent a need to bolster growth as other newly developing countries, the Economist suggests, and in any event it has lots of space to wiggle. Chinas ample room for easing supports the case for a soft rather than a hard landing of its economy, the publication says.
All this sounds wonderful, but none of it correlates with the facts. The 16.3% calculation excludes Beijings hidden liabilities. Once you add them in, Chinas debt-to-GDP ratio increases to somewhere between 90% and 160%. And if you believe Beijing has been overstating its GDP recentlyit has, at least starting from the last quarter of last yearChinas ratio approximates Greeces 164%.
Chinas economy, despite the Economists assessment, is already landing hard. Januarys results were dismalthe economy looks like it may even have contracted last monthand there will not be much improvement until the summer, if then. If there is no marked uptick this year, Beijing faces difficult choices because, as the ghost city phenomenon indicates, there has been a gross misallocation of capital since the end of 2008.
What are Beijings choices? First, central government technocrats could force the banks to absorb losses. At first glance, it appears the banks could afford substantial write-offs. The industrys non-performing loan ratio was 0.96% at the end of last year, down from an already unbelievable 1.14% at the end of 2010. Yet the central government will not force banks to write off large quantities of loans because the year-end 2011 ratio does not reflect the real state of bank balance sheets. The Ministry of Finance could again recapitalize the banks, but that may not be feasible. The central government has yet to clear all the bad loans from the big bailout at the end of the 1990s. Chinas hidden liabilities include warehoused loans from that era, which Holland estimates amount to 7.5% of GDP.
So there is no or minimal growth, the banks are not strong enough to shoulder significant losses, and the central government is weighed down by 1990s-era bad loans. What is a central government technocrat to do?
Beijing can take the path traditionally followed by other governments around the world and inflate its way out of the problem, Holland wrote on Friday. The general downward trend in consumer inflation looks to offer some flexibility, but pricesand especially those for foodare going up much faster than the numbers issued by the Bureau of National Statistics indicate.
It would be easy to create more inflation. The renminbi has strengthened recently, but most analysts believe Beijing will end the upward movement in the next few months, in large measure to rescue ailing export factories, to make Chinese products cheaper on world markets. The inevitable result of a depreciating currency would be inflation, which would help the central government erode the value of its mounting debt.
Of course, Chinas citizens, who accumulated 37.0 trillion yuan in household deposits by the end of last month, would be hurt by this tactic, but for more than three decades Beijing, by fixing deposit rates at abnormally low levels, has maintained an economic model that has punished them to help borrowers. Low deposit rates would depress consumption by keeping money out of the hands of citizens, but Chinese leaders have never been serious about building a consumer economy. In no economy today does consumption play a lower role.
And in a China where everything is political, there is one more factor to consider. Communist Party leaders are extraordinarily sensitive to inflation due to its potential to create widespread social unrest.
So, yes, there would be many disadvantages to using inflation to solve Chinas debt situation, but at this moment it looks like the least bad option for Beijings out-of-solutions technocrats. The Economist may believe they once had lots of room to wiggle, but their choices are all unpalatableand they are narrowing fast.
How Will China Pay Off Its Debt? - Forbes
So In reality China is the Greece of Asia , when the time comes to pay off that 164% Debt , all that 3 Trillion USD reserves will turn into 7 Trillion Loans
Pakistan = Beggar on steroids
SpArK
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Would like to say the same on you guys.... but you guys cant even afford steroids... get some from Africa
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