China’s Trade Surplus Surges to $31.5 Billion as Exports Exceed Estimates

[dearone4u_22]

exactly, china adds more than $1 trillion worth of gdp every year to the chinese economy.
thats china adding an entire india every year (indian gdp is around $1 trillion).

even the US growing at 2% adds way more gdp to its economy every year than india growing at 8%.

u need a lesson in economics .....

china surplus is a result of pegging to us dollar ..... a currency manipulation (actually it is a form of stimulus) to increase export which US is protesting about.Now that chinese currency is being revalued slowly and it aprreciate against dollar and euro ur economy will face a bigger shock coz a export driven economy cannot have a strong currency..
earlier u used to get 1$= 8 yuan now its 6 yuan approx so as ur currency appreciate ur export will become costlier means less production means less jobs growth which in turn means slower economy+ aging demographics+largest manpower

Now Come to india Our Rupee has depreciated 7% in last 3mnth against $ that itself is a stimulus for export even when indian econmy is largen domestic consumption driven mkt .... more export means more jobs means more growth+ young demographic+ second largest manpower

Although weak currency is not good coz it can lead to inflation as u have been seeing in both countries but if u use it wisely its can serve to stimulate economy promote job growth ....
with weak currency ur imports becomes costlier
So to tackle currency changes China needs to become consumpotion driven economy and India a export driven....

now tell me which countries future looks bleak....

 

[dadoon22]

This is very good news for everyone. People have issue's with Chine due their own problems.

 

[beijingwalker]

India Loses More Ground on China
October 20, 2011, 9:00 AM IST
There were only a few people to begin with who really thought India’s economic growth rate would outpace China’s – at least anytime soon.

Now, those voices are likely to be fewer and weaker.

As China’s economic growth hovers close to double digits, India is having to admit its 9% Gross Domestic Product expansion goal for the year ending March 31 is now pretty unrealistic.

“Let me not hide the fact that I have been disappointed by our growth performance over the last few months. It is evident that India’s growth rate in 2011-12 will be less than what we were expecting in February when I presented the Budget,” Finance Minister Pranab Mukherjee said in a speech during a media event on Wednesday.

In February, the finance minister said India’s economy was on track to expand 9% in the year through March 2012. On Wednesday, he hinted that 8% – or less –was more like it. That’s what “most observers” are expecting, Mr. Mukherjee said. He stopped short of making a formal growth forecast, saying he’ll share that with Parliament in December.

Those observers would appear to include the World Bank, which in a report released Wednesday echoed Mr. Mukherjee’s fears: it said that India’s economic growth is likely to slow from 8.5% last year to between 7% and 8% over the next two years. In other words, all those GDP headlines are likely to include a 7, or 7 point something, not the 8 or 9 or even 10 of the government’s dreams.

So what’s to blame? In his speech, Mr. Mukherjee said global financial woes – from high oil prices to the volatility of other commodity prices and capital flows – were largely responsible. Monetary policy tightening and interest rates, a response to the country’s uncomfortably high inflation, didn’t help either, he noted. These are points the World Bank also covered.

If –as the finance minister put it – “the dark clouds [that] have gathered in the global skies” are to blame, why isn’t China also suffering?

It appears that Beijing has done better than New Delhi at boosting domestic demand, an area that acquired greater relevance as Western countries are struggling with a prolonged economic slowdown.

“With the slow growth expected in core OECD countries, India’s GDP growth will have to rely on domestic growth drivers,” the report said. To do this, it said major structural reforms aimed at achieving fiscal consolidation (another big challenge for India) and at encouraging investment would be necessary. It said that “regulatory uncertainties” – ranging from environmental clearances to land acquisition laws to tax reforms – were holding back investors, an issue that is less of a problem in China. To strengthen domestic growth, it urged India to clear these up and to invest in infrastructure, among others.

China, by comparison, is now relying more heavily on its domestic demand and this is already helping its economy make up for a weaker export market.

Figures released earlier this week show that China’s gross domestic product expanded 9.1% in the quarter ended Sept. 30 from a year earlier, only slightly under analyst expectations of 9.2% growth.

The World Bank report also said that, compared to the current year, in the year through March 2011 India benefited from the strong performance of its agricultural sector, something that depends largely on a good monsoon.

Mr. Mukherjee invited his audience to look at the brighter side (rather than East.) “This is disappointing but at the same time we must not lose perspective of the global situation.”

 

[Chinese Century]

u need a lesson in economics .....

china surplus is a result of pegging to us dollar ..... a currency manipulation (actually it is a form of stimulus) to increase export which US is protesting about.Now that chinese currency is being revalued slowly and it aprreciate against dollar and euro ur economy will face a bigger shock coz a export driven economy cannot have a strong currency..
earlier u used to get 1$= 8 yuan now its 6 yuan approx so as ur currency appreciate ur export will become costlier means less production means less jobs growth which in turn means slower economy+ aging demographics+largest manpower

Now Come to india Our Rupee has depreciated 7% in last 3mnth against $ that itself is a stimulus for export even when indian econmy is largen domestic consumption driven mkt .... more export means more jobs means more growth+ young demographic+ second largest manpower

Although weak currency is not good coz it can lead to inflation as u have been seeing in both countries but if u use it wisely its can serve to stimulate economy promote job growth ....
with weak currency ur imports becomes costlier
So to tackle currency changes China needs to become consumpotion driven economy and India a export driven....

now tell me which countries future looks bleak....

LMAO, no wonder the entire indian economy is a total ponzi scheme, because none of the gullible indians understand basic macro economics.

economics is driven by savings, manufacturing and investment and underconsumption. not by debt based consumption like india. india is getting poorer as its gdp is rising as its debt is rising faster than gdp growth, its getting its gdp growth because its going deeper into debt. thats a classic ponzi scheme.

china is not an export economy, its a manufacturing economy, china can retool its manufacturing to produce to the domestic market. that is already happening. and ur nutty theory that weak currency means loss of competitivness is utter nonsense, japans yen was 360 to the dollar 30 years ago and its 80 now, but japan still runs trade surplus with the world. china's yuan was at 8 now its at 6.35, but china's trade surplus has risen even higher during that currency appreciation in absolute numbers aswell as % of gdp. during that currency appreciation china became the largest exporting nation in the world, even with a stronger currency.

china's reserves are because of trade surpluses of $200 billion every year plus forex intervention.
india runs massive trade deficits, massive budget deficits and has a very high debt to gdp %.
when a country goes into debt to get growth, ur headed for economic ruin. u dont run service sector economies with a per capita gdp of the size india has, service sector economes are wealth consuming, manufacturing sector is the wealth producing.
india's so called domestic consumption economy is a ponzi scheme. its debt based consumption just like greece. the only reason u can consume products u dont make is because u go into debt to do that, u cannot run massive trade deficits and prosper.
if india is to grow it has to go deeper into debt, and if india decides to stop going into debt, then indian growth will collapse as the only way india can grow is by going into debt to run this debt based consumer economy like greece. india dont have a manufacturing base to produce the goods. if. u dont have consumer driven economies and service sector economies with a per capita gdp of $1000 like india. indians cannot afford to consume these goods without borrowing money and increasing the debt burden as they dont have the disposable income to consume with their own money, thus they have to borrow. china dont need to go into debt to consume as china has its own savings, china is thus living with its means whereas india is living beyond its means ala greece.

india has a massive population growth problem as it doesnt have the resources to supply the fast growing population, india still has not figured out that having a massive population is a problem. china figured this out in the 1970s, thats why china introduced the one child policy, china knew the drain of the national resources of supporting an ever increasing population.
soon india will realise this and introduce a one child policy. indians are very ignorant and primitive humans, they are behind in the human evolution chain. thus it takes indians a while to figure out problems.

china has the 3rd largest consumer market in the world, china consumes way more than what india consumes.
china's consumer market is over $2 trillion, thats doubles the entire indian economy. lol, the chinese consumer market alone is twice as big as the entire indian economy and ur telling me chinese dont consume. go learn economics 101 before any indian rat lectures me on economics.

if u dont have a manufacturing base, ur screwed, america is finding that out.

china only needs to retools its products to its domestic market, thats a very easy thing to do. its happening already.
because china dont need to go into debt to consume its own products as china has the world largest gross national savings.

china has manufacturing base.
china has savings.
china can consume its own products.

china is now already the largest or 2nd largest consumer of many goods such as automobiles, PCs, smartphones, televisions, white goods, luxury goods, apparel, toys, aircraft, tablets, furniture, etc.

weak currency is not how u get exports u fool, then zimbabwe should be an exporting superpower.
there is no such thing as export economy.
its called being a manufacturing economy which can make products for the domestic market and the foreign market.
u have domestic consumption based economies only if u have balanced trade and domestic savings so u dont need to borrow money to consume, china can consume its goods without borrowing, india has to go into massive debts to consume goods u dont make and money u dont have.

businesses decide to manufacture in countries that have a pro-business environment. that means low regulations, low taxes, rule of law, easy access to capital, low cost of capital, low rent costs, low transportation costs, modern infrastructure(transport, communications, etc), etc.
its not just the labour cost that matters. otherwise africa will be manufacturing kings because african labour is free.
china provides this pro-business environment for entrepreneurs aswell as state subsidies and other incentives like no one else. thats why china is now the 2nd largest manufacturing nation, 2nd largest trading nation, largest exporter, largest creditor nation, largest forex reserves,3rd largest consumer market, 2nd largest industrial nation, 3rd largest tertiary sector, etc.

india is a debt based ponzi scheme which will have its greece moment in the future as this massive accumulation of debt is unsustainable.
india is one a one way street to economic ruin.

 

[IndoCarib]

LMAO, no wonder the entire indian economy is a total ponzi scheme, because none of the gullible indians understand basic macro economics.

economics is driven by savings, manufacturing and investment and underconsumption. not by debt based consumption like india. india is getting poorer as its gdp is rising as its debt is rising faster than gdp growth, its getting its gdp growth because its going deeper into debt. thats a classic ponzi scheme.

china is not an export economy, its a manufacturing economy, china can retool its manufacturing to produce to the domestic market. that is already happening. and ur nutty theory that weak currency means loss of competitivness is utter nonsense, japans yen was 360 to the dollar 30 years ago and its 80 now, but japan still runs trade surplus with the world. china's yuan was at 8 now its at 6.35, but china's trade surplus has risen even higher during that currency appreciation in absolute numbers aswell as % of gdp. during that currency appreciation china became the largest exporting nation in the world, even with a stronger currency.

china's reserves are because of trade surpluses of $200 billion every year plus forex intervention.
india runs massive trade deficits, massive budget deficits and has a very high debt to gdp %.
when a country goes into debt to get growth, ur headed for economic ruin. u dont run service sector economies with a per capita gdp of the size india has, service sector economes are wealth consuming, manufacturing sector is the wealth producing.
india's so called domestic consumption economy is a ponzi scheme. its debt based consumption just like greece. the only reason u can consume products u dont make is because u go into debt to do that, u cannot run massive trade deficits and prosper.
if india is to grow it has to go deeper into debt, and if india decides to stop going into debt, then indian growth will collapse as the only way india can grow is by going into debt to run this debt based consumer economy like greece. india dont have a manufacturing base to produce the goods. if. u dont have consumer driven economies and service sector economies with a per capita gdp of $1000 like india. indians cannot afford to consume these goods without borrowing money and increasing the debt burden as they dont have the disposable income to consume with their own money, thus they have to borrow. china dont need to go into debt to consume as china has its own savings, china is thus living with its means whereas india is living beyond its means ala greece.

india has a massive population growth problem as it doesnt have the resources to supply the fast growing population, india still has not figured out that having a massive population is a problem. china figured this out in the 1970s, thats why china introduced the one child policy, china knew the drain of the national resources of supporting an ever increasing population.
soon india will realise this and introduce a one child policy. indians are very ignorant and primitive humans, they are behind in the human evolution chain. thus it takes indians a while to figure out problems.

china has the 3rd largest consumer market in the world, china consumes way more than what india consumes.
china's consumer market is over $2 trillion, thats doubles the entire indian economy. lol, the chinese consumer market alone is twice as big as the entire indian economy and ur telling me chinese dont consume. go learn economics 101 before any indian rat lectures me on economics.

if u dont have a manufacturing base, ur screwed, america is finding that out.

china only needs to retools its products to its domestic market, thats a very easy thing to do. its happening already.
because china dont need to go into debt to consume its own products as china has the world largest gross national savings.

china has manufacturing base.
china has savings.
china can consume its own products.

china is now already the largest or 2nd largest consumer of many goods such as automobiles, PCs, smartphones, televisions, white goods, luxury goods, apparel, toys, aircraft, tablets, furniture, etc.

weak currency is not how u get exports u fool, then zimbabwe should be an exporting superpower.
there is no such thing as export economy.
its called being a manufacturing economy which can make products for the domestic market and the foreign market.
u have domestic consumption based economies only if u have balanced trade and domestic savings so u dont need to borrow money to consume, china can consume its goods without borrowing, india has to go into massive debts to consume goods u dont make and money u dont have.

businesses decide to manufacture in countries that have a pro-business environment. that means low regulations, low taxes, rule of law, easy access to capital, low cost of capital, low rent costs, low transportation costs, modern infrastructure(transport, communications, etc), etc.
its not just the labour cost that matters. otherwise africa will be manufacturing kings because african labour is free.
china provides this pro-business environment for entrepreneurs aswell as state subsidies and other incentives like no one else. thats why china is now the 2nd largest manufacturing nation, 2nd largest trading nation, largest exporter, largest creditor nation, largest forex reserves,3rd largest consumer market, 2nd largest industrial nation, 3rd largest tertiary sector, etc.

india is a debt based ponzi scheme which will have its greece moment in the future as this massive accumulation of debt is unsustainable.
india is one a one way street to economic ruin.

One truck load of crap

 

[gpit]

u need a lesson in economics .....

china surplus is a result of pegging to us dollar ..... a currency manipulation (actually it is a form of stimulus) to increase export which US is protesting about.Now that chinese currency is being revalued slowly and it aprreciate against dollar and euro ur economy will face a bigger shock coz a export driven economy cannot have a strong currency..
earlier u used to get 1$= 8 yuan now its 6 yuan approx so as ur currency appreciate ur export will become costlier means less production means less jobs growth which in turn means slower economy+ aging demographics+largest manpower

Now Come to india Our Rupee has depreciated 7% in last 3mnth against $ that itself is a stimulus for export even when indian econmy is largen domestic consumption driven mkt .... more export means more jobs means more growth+ young demographic+ second largest manpower

Although weak currency is not good coz it can lead to inflation as u have been seeing in both countries but if u use it wisely its can serve to stimulate economy promote job growth ....
with weak currency ur imports becomes costlier
So to tackle currency changes China needs to become consumpotion driven economy and India a export driven....

now tell me which countries future looks bleak....

So you finally confessed to us that India manipulated its currency in last 3 months to depreciate 7%? Then why whining against China?

Please tell us which country doesn’t manipulate currency in this world!

But the major problem is in your logic that: GDP (via export) can be increased simply by manipulating currency without hard working. That is a joke!

According to you magic, African countries don’t have to work, just depreciating their currency and their GDP will be enormous.

If majority of Indians' "lesson of Economy" is to follow western thinking instead of independent thinking, of course India’s future is much bleaker.

That’s a no-brainer.

 

[lllzh]

One truck load of crap

If you think he is totally wrong, then please prove it. This is a place for discussion not for reply insult with more insult.

----------------------------------------------------------------------------

I agree a lot of what you said, but I have some different opinions on the following:

economics is driven by savings, manufacturing and investment and underconsumption. not by debt based consumption like india. india is getting poorer as its gdp is rising as its debt is rising faster than gdp growth, its getting its gdp growth because its going deeper into debt. thats a classic ponzi scheme.

India's public debt as % of GDP is actually reduced. Though, the actual number from different sources are conflicting, but the trend is the same. Economic Weekly put it at 37.8% (FY11), while US gov put it at 51.9%(2010) down from 56.1%(2009).

I am not saying its low, considering Spain is at 60.1% (2010).

china is not an export economy, its a manufacturing economy, china can retool its manufacturing to produce to the domestic market. that is already happening. and ur nutty theory that weak currency means loss of competitivness is utter nonsense, japans yen was 360 to the dollar 30 years ago and its 80 now, but japan still runs trade surplus with the world. china's yuan was at 8 now its at 6.35, but china's trade surplus has risen even higher during that currency appreciation in absolute numbers aswell as % of gdp. during that currency appreciation china became the largest exporting nation in the world, even with a stronger currency.

First, I want to point out export still accounts for near 1/3 of GDP, but it is dropping. [http://www.iasworldtrade.com/us/china/51-china-exportgdp-ratio.html] (manufacturing economy and export economy are not opposite to each other anyway...)

Second, I think there is a difference between Japan and China for currency issue. When Plaza Accord was signed in 1985, Japan has already developed a processing(ie. telcomm) industry away from agriculture and manufacturing. This made Japan can withstand currency appreciation a lot more, since its industry is on the top of value chain. We will see if China can do the same.

india has a massive population growth problem as it doesnt have the resources to supply the fast growing population, india still has not figured out that having a massive population is a problem.

India did some work on family planning, their total fertility rate does dropped from 6 to 2.6.
I am a supporter for one child policy, but we can not ignore challenges came with it, such as population aging problem.

businesses decide to manufacture in countries that have a pro-business environment. that means low regulations, low taxes, rule of law, easy access to capital, low cost of capital, low rent costs, low transportation costs, modern infrastructure(transport, communications, etc), etc.
china provides this pro-business environment for entrepreneurs aswell as state subsidies and other incentives like no one else.

Isn't China has high taxes (look at taxes for retail business), difficult access to capital (news on usury) and high transportation costs (one major contributor to inflation right now) in the recent years? (not comparing to India)

 

[IndoCarib]

If you think he is totally wrong, then please prove it. This is a place for discussion not for reply insult with more insult.

----------------------------------------------------------------------------

I agree a lot of what you said, but I have some different opinions on the following:



India's public debt as % of GDP is actually reduced. Though, the actual number from different sources are conflicting, but the trend is the same. Economic Weekly put it at 37.8% (FY11), while US gov put it at 51.9%(2010) down from 56.1%(2009).

I am not saying its low, considering Spain is at 60.1% (2010).




First, I want to point out export still accounts for near 1/3 of GDP, but it is dropping. [http://www.iasworldtrade.com/us/china/51-china-exportgdp-ratio.html] (manufacturing economy and export economy are not opposite to each other anyway...)

Second, I think there is a difference between Japan and China for currency issue. When Plaza Accord was signed in 1985, Japan has already developed a processing(ie. telcomm) industry away from agriculture and manufacturing. This made Japan can withstand currency appreciation a lot more, since its industry is on the top of value chain. We will see if China can do the same.




India did some work on family planning, their total fertility rate does dropped from 6 to 2.6.
I am a supporter for one child policy, but we can not ignore challenges came with it, such as population aging problem.




Isn't China has high taxes (look at taxes for retail business), difficult access to capital (news on usury) and high transportation costs (one major contributor to inflation right now) in the recent years? (not comparing to India)

Let Chinese Century prove first how Indian economy is a Ponzi scheme. Rest of his crap you debunked

 

[S10]

Every country that has a central bank that controls interest rates and print money is "manipulating" its currency. United States have been doing it for years to ensure the dominance of the dollar. Recently, it is issuing credit like no tomorrow to prop up its economy, causing global inflation and diminishment of its debt value. That is also a form of currency manipulation.

The reason they blame China is that they're not getting what they want out of this currency business. If they can wreck China like they wrecked Japan, they sure as hell wouldn't be complaining.

---------- Post added at 12:06 PM ---------- Previous post was at 12:05 PM ----------

No one claims that India is a bigger economy than China, and people know that 20% of 100 is less than 16% of 500. So what is your point?

Before you claim to be "growing faster", have a look at the actual numbers first instead of just the rate.

 

[ChinaToday]

u need a lesson in economics .....

china surplus is a result of pegging to us dollar ..... a currency manipulation (actually it is a form of stimulus) to increase export which US is protesting about.Now that chinese currency is being revalued slowly and it aprreciate against dollar and euro ur economy will face a bigger shock coz a export driven economy cannot have a strong currency..
earlier u used to get 1$= 8 yuan now its 6 yuan approx so as ur currency appreciate ur export will become costlier means less production means less jobs growth which in turn means slower economy+ aging demographics+largest manpower

Now Come to india Our Rupee has depreciated 7% in last 3mnth against $ that itself is a stimulus for export even when indian econmy is largen domestic consumption driven mkt .... more export means more jobs means more growth+ young demographic+ second largest manpower

Although weak currency is not good coz it can lead to inflation as u have been seeing in both countries but if u use it wisely its can serve to stimulate economy promote job growth ....
with weak currency ur imports becomes costlier
So to tackle currency changes China needs to become consumpotion driven economy and India a export driven....

now tell me which countries future looks bleak....

LOL what a load of bull.

 

[LetsGetRowdy]

a slap in the face to india, for sure!

 

[ChinaToday]

a slap in the face to india, for sure!

and continous humiliation year after year

 

[Chinese Century]

If you think he is totally wrong, then please prove it. This is a place for discussion not for reply insult with more insult.

----------------------------------------------------------------------------

I agree a lot of what you said, but I have some different opinions on the following:



India's public debt as % of GDP is actually reduced. Though, the actual number from different sources are conflicting, but the trend is the same. Economic Weekly put it at 37.8% (FY11), while US gov put it at 51.9%(2010) down from 56.1%(2009).

I am not saying its low, considering Spain is at 60.1% (2010).




First, I want to point out export still accounts for near 1/3 of GDP, but it is dropping. [http://www.iasworldtrade.com/us/china/51-china-exportgdp-ratio.html] (manufacturing economy and export economy are not opposite to each other anyway...)

Second, I think there is a difference between Japan and China for currency issue. When Plaza Accord was signed in 1985, Japan has already developed a processing(ie. telcomm) industry away from agriculture and manufacturing. This made Japan can withstand currency appreciation a lot more, since its industry is on the top of value chain. We will see if China can do the same.




India did some work on family planning, their total fertility rate does dropped from 6 to 2.6.
I am a supporter for one child policy, but we can not ignore challenges came with it, such as population aging problem.




Isn't China has high taxes (look at taxes for retail business), difficult access to capital (news on usury) and high transportation costs (one major contributor to inflation right now) in the recent years? (not comparing to India)

china has low taxes on starting up or setting up a business, wealth producing sectors such as manufacturig is a free sector compared to any other country. taxing on retail business is a way to spur manufacturing and industrial growth and avoid service sector growth such as retail businesses at the expense of manufacturing. china has easy access to capital for vast majority of businesses, for startups its very easy to get bank loans and venture capital and private equity money is plenty. transportation costs have gone up in every country due to high commodity prices, and china's inflation is due to food prices, the core cpi is low.
inflation is not due to transportation costs, u have a lack of understanding on what inflation is.

india has done no family planning, their population is rising so fast they are becoming like african countries. overpopulation is a massive problem for any country, india should dramatically slow its population growth, they have too many people in a small land with little to no resources. how are they going to feed their population with no natural resources. they will have to import massive amount of resoures which will drain their financial wealth.

if u have ever studied economics, u would know export is not measured as a % of gdp, NET EXPORTS is what matters, and that is around 10-15%. and china has the fastest rate of consumption increase, the consumption as a % of gdp is irrelevant, japan has a 60% consumption as a % of gdp but consumption dont contribute anything to their current growth as their rate of consumption is low even though their share of consumption as a % of gdp is high. these are basic economics.

it doesnt matter where u are in the development cycle regarding currency. u dont understand the basic difference between manufacturing and exporting. they are completely different. china has a manufacturing economy, china can retool its economy anytime it wants to the domestic market, the higher the currency gets, the higher the rate of consumption becomes and u have seen that as china's currency has risen 30% but china's manufacturing competitiveness has not been hurt with that massive currency revaluation. the higher currency means the chinese manufacturing will sell more of its products to chinese consumers as chines have more purchasing power.

japan has a business friendly environment, thats why it still has a vibrant manufacturing sector. all this nonsense that economies are run based on weak currency are keynesian propaganda. if u have weak currecies, that increases the cost of raw materials to make a product, buying machines and equipment becomes more expensive. in ur way of thinking, zimbabwe should be a manufacturing superpower, but the problem is as currencies get weaker, low end manufacturers cant afford the higher raw material costs. china is now moving up the value chain to make not just low end goods but more and more high end goods.

as china's currency rises, chinese purchasing power increases and chinese consumers will buy more of the share of the chinese manufacturing, china will still be a massive exporter. american dollar has been getting weaker and weaker over the last 10 years but has lost manufacturing jobs, thats because they are over regulated. amount of regulations is one of the keys to having a vibrant manufacturing sector.


lastly, india is a total ponzi scheme economy. india is running a service sector economy based on consumption. how do they run a consumption based economy with no manufacturing and with a per capita gdp of $1000? by going into debt.
when ur growing, ur debt should be coming down as ur wealth is increasing, when ur gdp is rising aswell as ur debt, that means the reason india is growing is because its going into debt. thats a ponzi scheme. indian debt to gdp is higher than what they are reporting, its around 70% federal debt. its deficit is close to 10% every year. their debt is growing faster than its gdp. that means they are living beyond their means. if india tried to live within their means, their debt would not rise but their gdp growth would collapse.

india has no manufacturing base, so how do they get that goods to consume they dont have? buy running massive trade deficits.
how do the indian people consume those goods with money they dont have? buy going into debt.
india is a classic ponzi scheme economy as jim rogers has said.

china's economy is based on very sound fundamentals, india is a debt based ponzi scheme.
if u dont understand that, u need to go study basic economics.

 

[westtowel]

The chinese needs to study some basic economics.



Ghost Towns in China Prove GDP Is a Farce

Damien Hoffman: Ghost Towns in China Prove GDP Is a Farce



Government officials in China, the largest foreign holder of U.S. debt, have been chastising the U.S. over Standard & Poor’s downgrade to AA+.

Guan Jianzhong, chairman of Dagong Global Credit Rating, has said the U.S. dollar is “gradually [being] discarded by the world,” and the “process will be irreversible.”

But China’s debt-to-GDP ratio is worse than the United States’ ratio. It is worse than insolvent Portugal, which is now relying heavily on the European Central Bank for help, and had to go to the International Monetary Fund to get a financial bailout.


Damien Hoffman: Ghost Towns in China Prove GDP Is a Farce

By Aljazeera

 

[Chinese-Dragon]

^^^ Good, I hope you believe that.

That way, India's economy will continue to slow down while China surges ahead. Nothing to worry about right?