[2017-02-20]Is China’s Credit Bubble on the Brink of Bursting?

[Kemarit]

The End of China’s Credit Bubble Looms

Moreover, China is dealing with a growing debt-to GDP ratio. In 2000, the ratio was close to 100%, yet has increased ty 400% ever since. With the Chinese GDP slowing every single year, it will become much harder to create economic growth for China. In fact, it is not unlikely the credit bubble in the country will burst sooner rather than later. If that were to be the case, things will get ugly very fast.

The biggest problem is how partially inaccurate statistics do not allow for correct judgments. The government indicated China saw economic growth in 2016, albeit experts think those numbers are incorrect. It is unclear when the economy will crash in the country, albeit it is only a matter of time at this rate. Additionally, there is the Donald Trump factor that can make life very difficult for Chinese people moving forward. The credit bubble is showing dents already, yet holds its shape for te time being.

In the end, it is evident for everyone to see China’s economy is not healthy by any means. Albeit things are not as bad as Venezuela, there is very little reason for optimism. It is unclear what this situation means for the future of bitcoin in the country. With the PBoC taking new actions against exchanges nearly every week, one never knows what comes next. An intriguing situation to keep an eye on, that much is certain.

Link: http://www.newsbtc.com/2017/02/19/chinas-credit-bubble-brink-bursting/

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[aso118]

The debt would probably be much higher, because a lot of money flows through the shadow economy, which is unaccounted for. A bursting of this bubble will trigger a crisis far worse than the subprime crisis. Let us not forget, China is the engine which pulls the world economy along.

[arcanaaerobics]

The US has been dreaming of this moment for the past 30 years if not more.

It is time for their schemes to come to an end and stop pretending they are a economic powerhouse of a nation on borrowed dime from richer countries doing business with them.
And yes I know the USA have borrowed money from them so it is just borrowers paying off debit with borrowed money from another nation. How do you think the banks work?

[cr1776]

One can only hope that there are a large number of the people of China who are smart enough to see this coming and have the means and ability to protect themselves.  

They can (perhaps obviously) do this by buying things such as gold, platinum, and silver (and other precious metals), assets that are out of the country (which is clearly happening which why the PBOC is cracking down) and probably even more so bitcoin.  The advantages of bitcoin being that it is much easier to take bitcoin over the border if you need to flee compared to the PMs.  And conversely much easier to use bitcoin in the country if you need to do so, as compared to assets that are overseas.  

This is the nature of central planning, it never works in the long run and the people who the central planners claim to be protecting - "the little people" - are the ones who pay the price while the central planners have reaped the rewards.  It is criminal what economic devastation of this magnitude will do to many people there if it occurs.  Venezuela writ large.  Not to mention the ripple effects across the globe.