I know this is a woodworking site but many folk dont get to know or go looking at info like this on a daily basis.
This is one of those must read pieces of info assembled by a pretty credible organization and provides some concerning insight into our new global economy.
For those that think of China as a major borrower to the US pause for a moment and take a look at this report and get a glimpse of just how bad their debt situation actually is.
We have seen the videos of empty cities of apartments in China, well what many dont know is that in order to keep investment coming most look at GDP and growth rates of the emerging economies. The thing is few look any deeper and look at what goes into making up that GDP figure. Construction projects are a huge part of that play and create the illusion that things are booming. meanwhile all those construction projects are being funded by debt.
At some point the piper is going to have to be paid is all i can say. I aint no economist but I just do not see how this kind of scenario continues without serious fallout in our times.
There is an executive summary as well as full report in pdf to be able to download and read at your leisure if you interested.
If you want a shorter less detailed commentary by a talking head read the BBC article that was written about this report
Seems its not just the North Americans that are living beyond their means. I bet many of a grandparents would turn in their graves at what is happening today in terms of debt to be paid by future generations.
I can actually see time in the future when all the nations gather around the table and just agree to push reset and swap paper with each other.
I am still trying to get my head around how we go from cold war spending on totally unproductive assets in the form of thousands of missiles, ships, planes etc and then years later find despite having cut all that out we still increasing global debt. Says to me there has been a massive global spend on things that don't produce income and have been funded from borrowed money. Kinda like the 6 million plus my former town spent on refurbishing the hockey arena just to keep people employed.
All those empty cities in China cannot produce a return without tenants so how does debt get serviced ......or not?