FINANCIAL CRASH WARNING: China’s debt could cause economic disaster ‘worse than 2008’
CHINA'S mounting debts are a huge cause for concern and could blow up into a financial crisis worse than 2008, experts have warned.
The colossal country has seen its GDP to debt ratio soar to eye-watering levels, from 148 per cent at the end of 2007 to around 277 per cent at the end of 2016.
I was in China last year, and there really are miles upon miles of massive tarp covered apartment buildings, it's bonkers. The place I was staying was even weirder, it was like a movie set, is the only way to describe it. None of it felt real. And there were far too many people working in the hotel we stayed in, I kind of got the feeling they were unemployed, so their jobs were a sort of welfare set up- not a bad idea, if it were the case.
But overall, I came away with the feeling that there was some sort of bluff going on. It struck me that the excess of housing was related to a predicted population growth, again, not a bad idea. But the sheer amount of tarp covered buildings was shocking, and I wondered how they could ever be filled.
Yeah, if the Chinese economy is on the rocks, it could make the global '08 recession look pathetic in comparison. If a country like China can't pay it's debts or simply goes bankrupt, that will have a domino effect.