S&P: May Downgrade India (Debt at 70% of GDP)

[qwerrty]

india is shining, this can't be right?

 

[northeast]

If you have unwillingness or inability to read and understand the context, please spare us a useless knee-jerk reaction post.

you don't know the relation between trade balance and national debt，do you？

 

[Veritas]

Only 10% of Japanese debt is owned by foreigners. That is the reason that Japan has a solid credit rating despite the nominal debt level.

However, most of India's debt is held by foreigners. I'll post the chart below.

Comparing India to Japan is like comparing dissimilar apples and oranges. The analogy is not appropriate.

Great, please show me the chart where India's external debt is more than domestic debt.

 

[davidson]

Due to the fact that India's record trade deficit

Debt at % of GDP

My Forecast

2006 = 38%
2008 = 48%
2010 = 78%


2012= 108%
2015= 148% (higher than Greece, Italy)

 

[Veritas]

you don't know the relation between trade balance and national debt，do you？

I do. Do you know what a predicate is ?

---------- Post added at 03:45 PM ---------- Previous post was at 03:44 PM ----------

Due to the fact that India's record trade deficit

Debt at % of GDP

My Forecast

2006 = 38%
2008 = 48%
2010 = 78%


2012= 108%
2015= 148%

Your knowledge of Arithmetic Progression is commendable. But if you extrapolate that to growth projections, that is lame.

---------- Post added at 03:47 PM ---------- Previous post was at 03:45 PM ----------

india is shining, this can't be right?

No, the question is how much debt to gdp ratio is too much. We are talking about economic collapse levels. So, please do not throw hyperbole and cutesy bumper sticker liners.

 

[davidson]

Only 10% of Japanese debt is owned by foreigners. That is the reason that Japan has a solid credit rating despite the high nominal debt level.

However, most of India's debt is held by foreigners. I'll post the chart below.

Comparing India to Japan is like comparing dissimilar apples and oranges. The analogy is not appropriate.

India has $137.2 billion of external debt due by June 2012. Good luck in paying that guys. If you can't roll over the debt, your currency will implode.

----------

Is rupee depreciation the new normal?

"Is rupee depreciation the new normal?
Hindu Business Line - Ritesh Jain - 1 day ago

Unless we control inflation and reduce the supply-side constraints, the rupee is expected to depreciate further against the dollar.

India remains a net importer of goods in foreign trade, the stituation is very dangerous now

 

[Veritas]

Martian2,

So you promised me a chart claiming that India's debt is mostly owned by foreigners and came up with a list, which does not demonstrate that claim. If you want the numbers I can help.

You are patently lying when you made the claim. Any way, I should know better trying to reason with a lying Chinese guy is most unreasonable thing to do.

 

[northeast]

A mistake maybe

 

[AADHAAR]

Didn't india just begged the help of IMF （western master）
few days ago？

mental masturbation .... so, you like orgasms. Hmmm....

Perhaps, CPC has banned sex in china ... hence the need...

Quite understandable.

 

[skyknight]

So PIIGS are expectable and Indonesia will be part of the BRICS

 

[Zabaniyah]

That's actually pretty funny coming from an American

 

[lamlap]

So PIIGS are expectable and Indonesia will be part of the BRICS

2015

PIIGS = Portugal, India, Italy, Greece, Spain

BRIC = Brazil, Russia, INDONESIA, China

 

[Chinese-Dragon]

So PIIGS are expectable and Indonesia will be part of the BRICS

That is very possible.

www.defence.pk/forums/world-affairs/150945-i-bric-might-stand-indonesia-not-india.html

 

[TalkToMe:D]

Are you giving an ecomonic class? Are you an economic palmistry? Wow if you are true you would be the first person to make an accurate prediction

 

[Martian2]

India's credit rating is BBB-, which is one step above junk bond.

Japan's credit rating is AA- (solid investment grade).

The two countries are not comparable at all.

References:

Credit ratings and what they mean

"BBB-: Considered lowest investment grade by market participants. (Indian bonds are a tad above junk.)

BB+: Considered highest speculative grade by market participants." (This means junk bond.)

http://www.nytimes.com/2011/08/24/business/global/japans-credit-rating-cut-by-moodys.html