Wehave been hearing those economic prophets of doom since the GFC
but as of yet the concrete data does not support the wishful thinking, IMO.
Here is the World Bank's chart on on China GDP:
I realise as no doubt many keen economic observers on these threads would realise, that the US temporary
spike in inflation (twice that of China's) will produce a temporary lift in GDP followed by a more pronounced drop.
While most of China's debt is not Central Government debt like that of the USA but instead private/States'
debt due to Real Estate speculation, the Chinese Government can always do a "Republic of Ireland and
nationalise the debt laden assets. Furthermore on a national level China has $3.5 Trillion of foreign reserves
to do a bale out if neccessary (The US used $1 Trillion on the national credit card) to bale out its banks
during the GFC which kicked off its debt trail ever since 7 now running at 140% of GDP:
So, in summary, in a binary world of China & the USA, everything is relative.
Have a look at the bottom right "unfunded liabilities" on the debt clock below....eh?
https://www.usdebtclock.org
