National debt time bomb ticks toward crisis

[b0und]

should I lol?

This thread doesn't really make me lol. Not with the economy being in the shitter and all.

Maybe you can lol at this:

CHINA WILL BE MORE FUCKED THAN YOU in about 5 years time. Whilst the USA will be slowly pulling itself out of the crap by then.

Mark my words, China will go down HARD!






b0und (believe me)

 

[b0und]

Oh and if you're wondering about the 5 year time frame...

in 2016 the Chinese real estate will have to repay its bonds. The bonds that they used to build 65 million (100 million by 2015) apartments and houses that nobody can afford to buy.

And EVERYBODY in China lies about their finances/profits/balance sheet. Their economy will crash and burn like nothing has ever crashed and burnt before they've been in a balance sheet recession since 2008 and haven't even admitted it to themselves yet.





b0und (maybe you'll feel better about your economy now?)

 

[PICK3]

in 2016 the Chinese real estate will have to repay its bonds.

they could just leverage it against the half of the North American continent they'll own by then

 

[miplank]

ololohedoesn'treallyhaveaplanwe'reactuallyfucked!lolol!

WTF?!

 

[wombtool]

Oh and if you're wondering about the 5 year time frame..

I was thinking that time frame was when Teh Glad realizes his 5 year plan is for shit and says fuck it and moves to China, thereby destroying their entire economy.

 

[b0und]

they could just leverage it against the half of the North American continent they'll own by then

They are already leveraged up to their eyeballs. Asset inflation always causes long and painful periods of deflation, eg Japan 1992 until today.

Shanghai median apartment price > 500x average annual income in Shanghai.

They are so over leveraged their great-great-grandkids are going to have to pay their mortgages.

China will go down hard.






b0und (and probably take Australia down with them )

 

[mrplunkey]

Oh and if you're wondering about the 5 year time frame...

in 2016 the Chinese real estate will have to repay its bonds. The bonds that they used to build 65 million (100 million by 2015) apartments and houses that nobody can afford to buy.

And EVERYBODY in China lies about their finances/profits/balance sheet. Their economy will crash and burn like nothing has ever crashed and burnt before they've been in a balance sheet recession since 2008 and haven't even admitted it to themselves yet.





b0und (maybe you'll feel better about your economy now?)

1) Even if the hype crashes (which I agree is possible), they'll still be left with hundreds of millions of able-bodied workers making things. They'll be fine.

2) What would a Chinese crash look like? A meager 3% growth? We'd kill for a Chinese-style "crash" here in the US.

 

[TrueLiberal]

China has a huge real estate bubble right now, but they also have a production based economy, not a debt based economy like the United States. The nature of the Chinese real estate bubble is different than the United States real estate bubble. The Chinese government forces people out of their homes to make room for centrally planned cities. Chinese consumers still need homes. The United States real estate fiasco put people into homes which they could not afford. The Chinese central planners are wasting resources building cities that are empty and forcing up the price of real estate.

The United State's national debt is already in crisis. The debt cannot be serviced by taxation. The United States ideally would default on it's debt at this point and restructure payment (kind of like bankruptcy for an individual). What the United States federal government is more likely to do however is sell treasuries to the Federal Reserve, have the treasury create money to pay off the nominal value of the debt, and destroy the value of the dollar by hyperinflation thereby causing an even worse economic crisis for United States citizens and the rest of the dollar dependent world.

 

[mrplunkey]

China has a huge real estate bubble right now, but they also have a production based economy, not a debt based economy like the United States. The nature of the Chinese real estate bubble is different than the United States real estate bubble. The Chinese government forces people out of their homes to make room for centrally planned cities. Chinese consumers still need homes. The United States real estate fiasco put people into homes which they could not afford. The Chinese central planners are wasting resources building cities that are empty and forcing up the price of real estate.

The United State's national debt is already in crisis. The debt cannot be serviced by taxation. The United States ideally would default on it's debt at this point and restructure payment (kind of like bankruptcy for an individual). What the United States federal government is more likely to do however is sell treasuries to the Federal Reserve, have the treasury create money to pay off the nominal value of the debt, and destroy the value of the dollar by hyperinflation thereby causing an even worse economic crisis for United States citizens and the rest of the dollar dependent world.

Wow. Well said!

 

[PICK3]

Wow. Well said!

butt he's a liberal