Bad debts in China?
 

http://www.bbc.co.uk/news/business-16405253

I hope they'll still be able to bail the rest of us out... :erm:

Re: Bad debts in China?
 

That's some variance (6 * 2012 Olympics)

or about £50 for every man, woman or child in China

Re: Bad debts in China?
 

If America goes bust then china will be in real trouble, China is one of Americas biggest creditors, but not as much trouble as japan, they will go best as they have 200% or GDP debt and are also of Americas biggest creditors!

Re: Bad debts in China?
 

Well, reports are that China is trying to shift the amount of US debt it holds as well as not buy so much in the first instance to reduce the risk if/when the US defaults

Re: Bad debts in China?
 

Japan's debt is quite unique as the overwhelming majority of it is held domestically rather than internationally. It's why they've been able to sustain such a massive debt.

Re: Bad debts in China?
 

Yes, but for how much longer!

Re: Bad debts in China?
 

One thing I don't get is that if everyone is owing everyone money, who actually has the money that has been loaned in the first place. Or is the reality that this money never existed and the economics that have fuelled the industrialised world economy always been on a false pretence that has now been exposed as one big lie? And assuming that is the case, are we very close to a real meltdown as nobody can pay their bills.

Re: Bad debts in China?
 

We nned to complely change our ecomonic system and capitalsim itself!

Re: Bad debts in China?
 

To what?

Re: Bad debts in China?
 

A better form of capitalism that represents the rest of us, not just the very rich!

Re: Bad debts in China?
 

Can't the whole world just call it quits with each other and start afresh? :)

we could set up charities galore all over the world, and have governments down as recognised charities. fund raising events. text donations and everything.

Re: Bad debts in China?
 

For once, I agree with you. ;)

Re: Bad debts in China?
 

Star Trek wonga..

We need gold pressed latinum, and we need to get as much of it as we can, before America corners the market :)

Re: Bad debts in China?
 

Or embrace Communism like....ahem ...China :erm:

Re: Bad debts in China?
 

... and Russia don't forget. No super rich elite there you know... :D

Re: Bad debts in China?
 

Not Communism, I agree that It did not work at all, we are Stuck with Capitalsim, but we need to change it!

Re: Bad debts in China?
 

Spot on for once Alan.

---------- Post added at 13:40 ---------- Previous post was at 13:39 ----------

The one thing we do not want is Communism.

Re: Bad debts in China?
 

Yes that often seems the case.

Re: Bad debts in China?
 

If a new system was devised it would be the rich and powerful of today devising it so basically nothing would change so why even bother lol. I am sure something big is coming but no idea what or when hey here's a thought maybe there is more to this whole "world ends december 21st" thing so they all went spending nuts knowing they didn't have to pay it back :).

Re: Bad debts in China?
 

The Mayans meant that December 21th 2012 would be the end of an era, maybe the old order will be overthrown by then!

Re: Bad debts in China?
 

How do you know what the Mayans meant?

Re: Bad debts in China?
 

I meant what the Mayans meant about what would happen onn the 21th December 2012, the one which has casued "the end of the world" claims

Re: Bad debts in China?
 

I've been puzzling over that same issue for some months now. As far as I can tell the money doesn't actually and never actually existed. If you look at it from a personal level it seems to be easier to comprehend. Suppose you go to your bank for a loan and they grant it. They then credit your account. Now YOU have a debt and the bank shows that debt as a positive value on their accounts. However, no money has actually been moved around, the bank has created that credit out of thin air.

Apply the same logic to international finance. These numbers are apparently created in the same way to balance the books between countries. It all appears to be a 'trust' game with everyone involved agreeing to play the 'fiat' game by the rules. The big banks hold immense amounts of imaginary money in the form of these debts which apparently makes them quite wealthy.. However, it all depends on all the players continuing to honour this insane system.

Now suppose one country says "I'm not playing anymore and you can't have your monopoly money back". Oops, suddenly a load of wealthy banks are revealed as rather the opposite. And what happens if a major number of Eurozone countries say the same?

Re: Bad debts in China?
 

They'll soon recoupe it back when the money from the sale of cheap TV's filters through to them.