Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (61944)	3/13/2010 3:43:28 PM
From: KyrosL	1 Recommendation Read Replies (1) \| Respond to of 217976

The problem with Jubak's analysis is that Chinese local government debt backs actual investments from power plants to real estate. In the US such investment resides in private companies and is supported by private company debt. Therefore, the figure of 75% of Chinese debt to GDP is not comparable to the USA projected 90% public debt to GDP this year. The comparable US figure should include a lot of private company debt. A better figure for a country's overall indebtedness should compare the total country debt to GDP -- government, company, household. On that score, the US has no peer, with that ratio being around 350%, primarily because of its heavy household indebtedness. The Chinese, with their very low household debt, beat us by many miles.