What If the China Bubble Bursts?

[Chinese-Dragon]

If USA wipes out, then everyone will follow the leader.
BTW what are you going to do with factories if no one wants to buy.

Hahaha firstly, there is no hint of that happening. If any country fails to pay back their debt, their credit rating will crash. This hurts the most for countries which require foreign debt to survive, such as the US.

Secondly, even IF that somehow happened, we would still have currency reserves of over 2 trillion left.

Did you hear that? Even if we lost 1 trillion from our currency reserves, our reserves would still be larger than the ENTIRE Indian economy.

And we wouldn't even lose that in the first place, since like I said, we can easily seize the assets of any country that fails to pay its debt.

 

[S10]

If USA wipes out, then everyone will follow the leader.
BTW what are you going to do with factories if no one wants to buy.

I suggest you look at the comments by economist Peter Schiff first before getting dumber.

The World Economy is an Island - YouTube

 

[Mike2011]

Hahaha firstly, there is no hint of that happening. If any country fails to pay back their debt, their credit rating will crash. This hurts the most for countries which require foreign debt to survive, such as the US.

Secondly, even IF that somehow happened, we would still have currency reserves of over 2 trillion left.

Did you hear that? Even if we lost 1 trillion from our currency reserves, our reserves would still be larger than the ENTIRE Indian economy.

And we wouldn't even lose that in the first place, since like I said, we can easily seize the assets of any country that fails to pay its debt.

your entire economy will cripple in couple months. If USA stops buying from china.
Well you have to show brave face.

 

[Chinese-Dragon]

your entire economy will cripple in couple months. If USA stops buying from china.
Well you have to show brave face.

Hahaha you guys have been predicting our downfall for decades now.

When is it coming?

 

[Mike2011]

Hahaha you guys have been predicting our downfall for decades now.

When is it coming?

As long as your country give credit to USA and other countries.

 

[S10]

As long as your country give credit to USA and other countries.

Americans paid Barbary pirates protection money, before they crushed them in two wars. On the other hand, the only thing Indian can crush is their own ego.

No wait we did that for you in 1962.

 

[HavocHeaven]

As long as your country give credit to USA and other countries.

lolz?
You can blame your own issues on Chimany for giving you credit, no problem. But saying anything like Chimany will burst before those countries do not produce... oh well.

 

[rcrmj]

Yes, decreasing consumption will cause problems for our exports. Which is why the Chinese government is trying to move us from an export/investment based economy, to one driven by domestic consumption.

Exports currently make up 29% of China's GDP, according to the World Bank. That number should fall in the future.



That actually benefits us. As disposable incomes go down, the demand for cheaper goods rises. (While the demand for luxury goods will fall).

We saw this during the Credit Crunch. People had less money to spend, so they bought cheaper goods, which were more likely to be made in China.

partially true, but as I am in Luxury industry and i know as a fact (dirty) most of so-called 'made in Europ' are actually made in China, so the brands can make a premium out of it (relatively cheap cost and highest price possible)

after the crunch, Chinese exports didnt seem to be affacted so much, of course there are many reasons, for example people buying more cheaper obvious 'made in China' goods..

but also due to the depreciation of Euros, Pounds and dollars, more and more Chinese going abroad to buy luxury goods, as the tax in China is rather high, so in the sense it pushes our luxury sector during last 3 years and continuing.

I am not going to tell you guys how the world luxurt industry operates but just want you know as a fact like most of world top luxury brands 80% of their products cost value is added by China, but 90% of their retail price value is added by their brand name and marketing``

and the crunch only hurts the majority working class but hardly on those already rich upper-class, so as China moving towards up chain (which already) the most hurt industry in China are those labour intensive less value added factories which in my hometown province there are 6,000 of small low tech businesses closed down, but the big ones or high tech ones enjoying different stories.

just by walking down London, nowadays in stors like, H&M, Zara, Gap and Next cheap clothing shops the proportion of Made in China is getting less and less, and more and more from India, but if you visit upper-middle brands like Reiss and upper brands like G&D most of their goods are 'made in China', 'made in turkey' or 'made in Mauritius' ```and it is similar to electronic industry.

and in terms of electronic capital goods, ship building, machinery and wirless data service industries the trend is more obvious, Chinese high tech companies are becoming very popular among them, the fact is China leads high tech exports at $380 bn which is more than the whole EU combined togather.

---------- Post added at 11:08 AM ---------- Previous post was at 11:05 AM ----------

your entire economy will cripple in couple months. If USA stops buying from china.
Well you have to show brave face.

China exports only consist of 29% of $6trillion GDP, and the exports to U.S is less then 20% out of 29%, and tell me how is U.S gonna collapse chinese economy by not buying chinese goods?

 

[rcrmj]

I never understand why Indians want to critique Chinese economic structure. It's like a failing student laughing at a student for getting only 70 out of 100 on a test. Certainly China has many internal problems of its own in terms of the economy, but Indian trying to make a scene out of them is just funny.

they need to stress out their inferior complexity somehow, either on China or on Pakistan

 

[AZADPAKISTAN2009]

If China bubble bursts then nothing will happen China will manufacture a new bubble

 

[AADHAAR]

If China bubble bursts then nothing will happen China will manufacture a new bubble

Inshallah !

Hope the next one is built by collecting a few trillions of PKR (Pakistani rupees).

1. China's exports will continue to boom - 200 million Pakistani population has great appetite for consumption.

2. China will no longer need to pile up the same currency (USD), any more. Pakistan can simply print PKR to pay for all the imports.

3. Both China and Pakistan can together show their middle finger to USA and their European friends.

 

[IndoCarib]

Some Chinese were making fun of India's debt to gdp ratio.
China debt bubble worries investors

 

[Chinese Century]

Some Chinese were making fun of India's debt to gdp ratio.
China debt bubble worries investors

indian debt to gdp is over 71%. thats just the federal debt. not even counting the local debts.

chinese federal debt is only 18% and if u include local debt it is 25%. that is total federal and local debt of 43%.
LOL china's total debt is much smaller than the indian federal debt alone. if u count the total indian debt, its well over 100%.

china is the largest creditor nation.
india is a debtor nation.

china has largest current account surplus.
india has current account deficit.

china has trade surplus.
india has trade deficit.

india is an economic ponzi scheme that is going deeper into debt to consume, thats the defintion of a ponzi scheme.

china has the largest savings pool to consume chinese made products. china has a massive manufacturing base.
india has no manufacturing base, the entire indian gdp is based upon a massive debt based ponzi scheme.


china is the largest creditor nation.
china has the largest gross national savings ($3.2 Trillion as of 2010).
china is the largest exporter ($1.5 trillion as of 2010).
china has the largest foreign exchange reserves.
china has the largest Agricultural sector ($564 billion as of 2010).
china has the largest current account surplus.


china is the 2nd largest economy ($5.8 trillion as of 2010).
china is the 2nd largest manufacturer ($1.48 Trillion as of 2010).
china is the 2nd largest trading nation ($2.8 trillion as of 2010).
china has the 2nd largest Industrial sector ($2.75 trillion as of 2010).
china is the 2nd largest importer ($1.3 trillion as of 2010).
china is the 2nd largest luxury goods consumer market ($10.7 billion as of 2010).


china has the 3rd largest total household wealth ($20.2 trillion as of 2011).
china is the 3rd largest consumer market ($2.3 trillion as of 2010).
china has the 3rd largest Service sector ($2.56 trillion as of 2010).



india has......DEBT DEBT AND MORE DEBT!

 

[danger007]

indian debt to gdp is over 71%. thats just the federal debt. not even counting the local debts.

chinese federal debt is only 18% and if u include local debt it is 25%. that is total federal and local debt of 43%.
LOL china's total debt is much smaller than the indian federal debt alone. if u count the total indian debt, its well over 100%.

china is the largest creditor nation.
india is a debtor nation.

china has largest current account surplus.
india has current account deficit.

china has trade surplus.
india has trade deficit.

india is an economic ponzi scheme that is going deeper into debt to consume, thats the defintion of a ponzi scheme.

china has the largest savings pool to consume chinese made products. china has a massive manufacturing base.
india has no manufacturing base, the entire indian gdp is based upon a massive debt based ponzi scheme.


china is the largest creditor nation.
china has the largest gross national savings ($3.2 Trillion as of 2010).
china is the largest exporter ($1.5 trillion as of 2010).
china has the largest foreign exchange reserves.
china has the largest Agricultural sector ($564 billion as of 2010).
china has the largest current account surplus.


china is the 2nd largest economy ($5.8 trillion as of 2010).
china is the 2nd largest manufacturer ($1.48 Trillion as of 2010).
china is the 2nd largest trading nation ($2.8 trillion as of 2010).
china has the 2nd largest Industrial sector ($2.75 trillion as of 2010).
china is the 2nd largest importer ($1.3 trillion as of 2010).
china is the 2nd largest luxury goods consumer market ($10.7 billion as of 2010).


china has the 3rd largest total household wealth ($20.2 trillion as of 2011).
china is the 3rd largest consumer market ($2.3 trillion as of 2010).
china has the 3rd largest Service sector ($2.56 trillion as of 2010).



india has......DEBT DEBT AND MORE DEBT!

China never maintained transparency even in economy or military.Unlike India, China never allowed media against China. So until the time comes we can't expect any thing.

 

[IndoCarib]

indian debt to gdp is over 71%. thats just the federal debt. not even counting the local debts.

chinese federal debt is only 18% and if u include local debt it is 25%. that is total federal and local debt of 43%.
LOL china's total debt is much smaller than the indian federal debt alone. if u count the total indian debt, its well over 100%.

china is the largest creditor nation.
india is a debtor nation.

china has largest current account surplus.
india has current account deficit.

china has trade surplus.
india has trade deficit.

india is an economic ponzi scheme that is going deeper into debt to consume, thats the defintion of a ponzi scheme.

china has the largest savings pool to consume chinese made products. china has a massive manufacturing base.
india has no manufacturing base, the entire indian gdp is based upon a massive debt based ponzi scheme.


china is the largest creditor nation.
china has the largest gross national savings ($3.2 Trillion as of 2010).
china is the largest exporter ($1.5 trillion as of 2010).
china has the largest foreign exchange reserves.
china has the largest Agricultural sector ($564 billion as of 2010).
china has the largest current account surplus.


china is the 2nd largest economy ($5.8 trillion as of 2010).
china is the 2nd largest manufacturer ($1.48 Trillion as of 2010).
china is the 2nd largest trading nation ($2.8 trillion as of 2010).
china has the 2nd largest Industrial sector ($2.75 trillion as of 2010).
china is the 2nd largest importer ($1.3 trillion as of 2010).
china is the 2nd largest luxury goods consumer market ($10.7 billion as of 2010).


china has the 3rd largest total household wealth ($20.2 trillion as of 2011).
china is the 3rd largest consumer market ($2.3 trillion as of 2010).
china has the 3rd largest Service sector ($2.56 trillion as of 2010).



india has......DEBT DEBT AND MORE DEBT!

You forgot to add this !

China cooks the books: the official numbers understate economic growth | Jubak Picks

and this

China Manipulates Its Currency