....world's top financial watchdog warns

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Maverick

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China facing full-blown banking crisis, world's top financial watchdog warns

"The Bank for International Settlements warned in its quarterly report that China’s "credit to GDP gap" has reached 30.1, the highest to date and in a different league altogether from any other major country tracked by the institution. It is also significantly higher than the scores in East Asia's speculative boom on 1997 or in the US subprime bubble before the Lehman crisis."

"China’s total credit reached 255pc of GDP at the end of last year, a jump of 107 percentage points over eight years. This is an extremely high level for a developing economy and is still rising fast .

Outstanding loans have reached $28 trillion, as much as the commercial banking systems of the US and Japan combined. The scale is enough to threaten a worldwide shock if China ever loses control. Corporate debt alone has reached 171pc of GDP, and it is this that is keeping global regulators awake at night."

“There has been a distinctly mixed feel to the recent rally – more stick than carrot, more push than pull,” said Claudio Borio, the BIS’s chief economist. “This explains the nagging question of whether market prices fully reflect the risks ahead.”

http://www.telegraph.co.uk/business/2016/09/18/bis-flashes-red-alert-for-a-banking-crisis-in-china/
 
I think we still have a couple of years before something serious happens to the world economy. Maybe it won't be a total crash but whatever happens it won't be good for us. I started last week selling a lot of my stock and started buying tangible goods. I feel its time to accelerate our plans and complete our preps.
 
China does have a huge advantage. Yes, they owe lots of money. HOWEVER, they actually are earning money. China manufactures things. That is equivalent to making money. Over time, they can pay debt, the only question is how much and how fast..

Compare that to the US. Just fed gov't debt is $20T, about 500% of tax rolls. And many put the local/state/fed debt in the $100trillion range. I have no idea what corporate debt is on top of this, but does it matter? And note our gov't doesn't make anything! And for US corporations, they hardly 'make' anything either. So I don't think we're any better off here in the USA.
 

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