Who are World's Top 10 Largest Creditor Nations?

[Shotgunner51]

Well, US don't really need to care since they are the money printers. We must use these dollars to build up the country, there is still alot of work to be done on infrastructure, and by that I mean wastewater plants, water recycling plants, waste incinerators, there is a lot of environmental infrastructure which needs to be built.

Yes, their domestic currency is being used internationally in trade settlement and as reserves, value (exchange rate) is supported, that's a purchasing power rarely seen in world history.

• All nations must get dollar first in order to get oil from GCC, which will then recycle dollar back to US (e.g. portfolio investments, services purchase or arms purchase at marked up prices). Oil is essentially a true hard currency (well at least it was, depending on progress of new energy), and so is the dollar.
  
• Note, their dollar can buy them things, but the same dollar hold by China can't. Say they can import hi-techs from Japan & Germany, while the Wassenaar Arrangement prevents China from doing the same. US government is also increasingly limiting on what US assets (even non-US assets like Aixtron, Norsat, Australian grid) can be sold to China, further limit purchasing power of dollar held by China.

That's why when "Made in China 2025" is about bringing China to industrial level par with Japan & Germany, OBOR is about pivoting away from dollar-denominated trade, it's about long-term sustainability of economy, even national survival.

 

[Shotgunner51]

Press release
Release date: June 15, 2017

Taiwan's International Investment Position, 2016

A country's international investment position is the balance sheet of the stock of residents' financial assets and liabilities to the rest of the world.

At the end of 2016, Taiwan's total external assets grew by US$ 123.81 billion, or 7.5%, to US$ 1,775.33 billion, compared to the end of 2015. This was mainly attributable to increases both in investment in foreign debt securities by insurance companies and in banks' deposits with overseas branches.

Taiwan's total external liabilities at the end of 2016 stood at US$ 673.75 billion, increasing by US$ 88.48 billion, or 15.1%, from the end of the previous year. this was due to larger net inflows of foreign equity investment and rising local share prices, as well as an increase in foreign borrowings of the banking sector.

As of the end of 2016, Taiwan's International Investment continued to record a net asset position of +US$ 1,101.59 billion, increasing by US$ 35.32 billion or 3.3% over the end of the previous year. Taiwan currently ranks as the 5th largest net creditor in the world.

http://english.ey.gov.tw/News_Conte...A256C&sms=925E4E62B451AB83&s=D0C63C4E0475E660

@TaiShang

 

[TaiShang]

Press release
Release date: June 15, 2017

Taiwan's International Investment Position, 2016

A country's international investment position is the balance sheet of the stock of residents' financial assets and liabilities to the rest of the world.

At the end of 2016, Taiwan's total external assets grew by US$ 123.81 billion, or 7.5%, to US$ 1,775.33 billion, compared to the end of 2015. This was mainly attributable to increases both in investment in foreign debt securities by insurance companies and in banks' deposits with overseas branches.

Taiwan's total external liabilities at the end of 2016 stood at US$ 673.75 billion, increasing by US$ 88.48 billion, or 15.1%, from the end of the previous year. this was due to larger net inflows of foreign equity investment and rising local share prices, as well as an increase in foreign borrowings of the banking sector.

As of the end of 2016, Taiwan's International Investment continued to record a net asset position of +US$ 1,101.59 billion, increasing by US$ 35.32 billion or 3.3% over the end of the previous year. Taiwan currently ranks as the 5th largest net creditor in the world.

http://english.ey.gov.tw/News_Conte...A256C&sms=925E4E62B451AB83&s=D0C63C4E0475E660

@TaiShang

How about Macau? For Greater China, they lump together Mainland, HK and TW. But I did not see Macau being mentioned.

Due to tourism based economy, perhaps niip is negative.

 

[Shotgunner51]

How about Macau? For Greater China, they lump together Mainland, HK and TW. But I did not see Macau being mentioned.

Due to tourism based economy, perhaps niip is negative.

Macau is definitely a creditor economy, look at the sustaining current account surplus, and sustaining increase in financial account. I don't have the 2016 year-end data yet, still waiting for AMCM (Autoridade Monetária de Macau; 澳門金融管理局) to release. Macau is so rich that its welfare is the best, but size-wise I am sure it's not comparable to Hong Kong, Taiwan or Mainland.

http://www.amcm.gov.mo/files/research_and_stats/balance_of_payments_statistics/en/bop2015_en.pdf

 

[patman]

saw this interesting video, explains why china is spending so much debt and desperately trying to globalize

 

[ito]

Because that is how China grew for the last 30 years…and this is what China knows best…on how to use debt to grow. Chinese debt is almost three times its GDP, and almost 30% of Chinese GDP is exclusively used to service this debt. The problem is not its debt, in fact debt to GDP ratio is lower than what US and Japan has, but Chinese economy seem to exhaust its capacity to grow using debt, and its other markets especially the equity markets are underdeveloped giving its no cushion in an event of a fall back. That is why in spite of having higher debt to GDP ratio US enjoys better Moody’s rating and Japan the same rating as China.

 

[ashok321]

China will be in the 1-2-3 podium along with the US & India in the year 2050. It is UNSC permanent member with hard currency printing power coupled with megaton capacity nuke weapons.

The International credit rating agencies a la Fitch, S&P or Moody's all have headquarters in the US. The rating always fluctuates and is not permanent.

China's main export is electrical machinery, which is double the India's total exports that includes Basmati rice, mangoes, cereals and gems & jewellery.

China maintains a huge trade surplus never thought of before.
China is not a tiny winy Greece.
Slower China Will Still Grow by Four Greeces This Year:

https://www.bloomberg.com/news/articles/2015-06-17/slowing-china-to-grow-by-four-greeces-this-year

@patman

In fact India has more chances of going bust than the China.

You would hardly find any lethargic Chinese, while there are many Indians.

China as a global investor
report

China/HK is a creditor nation:
List of creditor nations by net international investment position per ...

Is India?

 

[powastick]

China will be in the 1-2-3 podium along with the US & India in the year 2050. It is UNSC permanent member with hard currency printing power coupled with megaton capacity nuke weapons.

The International credit rating agencies a la Fitch, S&P or Moody's all have headquarters in the US. The rating always fluctuates and is not permanent.

China's main export is electrical machinery, which is double the India's total exports that includes Basmati rice, mangoes, cereals and gems & jewellery.

China maintains a huge trade surplus never thought of before.
China is not a tiny winy Greece.
Slower China Will Still Grow by Four Greeces This Year:

https://www.bloomberg.com/news/articles/2015-06-17/slowing-china-to-grow-by-four-greeces-this-year

@patman

In fact India has more chances of going bust than the China.

You would hardly find any lethargic Chinese, while there are many Indians.

China as a global investor
report

China/HK is a creditor nation:
List of creditor nations by net international investment position per ...

Is India?

Obviously US is using Moody to narrate the world. Net Creditor country A+(China Japan) compare to the Biggest Net Debtor Country (USA) in the world AAA rating.

The real reason Moody lower China bond rating was to immorally earning money through manipulating currency by creating panic. But they got punished.

http://www.zerohedge.com/news/2017-...ied-after-yuan-overnight-deposit-rate-hits-65

 

[SBUS-CXK]

Because that is how China grew for the last 30 years…and this is what China knows best…on how to use debt to grow. Chinese debt is almost three times its GDP, and almost 30% of Chinese GDP is exclusively used to service this debt. The problem is not its debt, in fact debt to GDP ratio is lower than what US and Japan has, but Chinese economy seem to exhaust its capacity to grow using debt, and its other markets especially the equity markets are underdeveloped giving its no cushion in an event of a fall back. That is why in spite of having higher debt to GDP ratio US enjoys better Moody’s rating and Japan the same rating as China.

@patman "China Threat Theory" and "China collapse theory" have been hyped by Americans for 20 years. Now Indians inherited it?

Go back to sleep, and when you wake up, China will crash...

 

[windywine]

The total debt to GDP ratio for Japan and Ireland is more than 400%. I think these countries are in more dangerous place than China.

Although the total debt to GDP ratio for China is close to 280%, which is similar as US, China's debt structure is much healthier than either US, Japan and UK etc because countries like US, Japan and UK have major portion of debt in government sector, which is consumed by welfare and healthcare

In contrast, major portion of China's debt is owed by the sector of non-financial corporations. When we talk about the debt owed by a corporation, we must consider its asset. Usually the debt to asset ratio of 40% to 60% is considered to be the appropriate level. A lot of China state-owned corporations may have heavy debt, but they also have added up tremendous asset. For a corporation, ignoring the asset and only talking about the debt is inappropriate. Same thing for China's debt issue.

 

[Realtalk108]

Oh look, another moron yapping about how "China might go bankrupt".

First of all, can we do away with this "China's growth is slowing down" nonsense. Of course it is slowing down because that's how statistics work stupid. A 22 trillion USD economy is bound to grow 'slower' than a 10 trillion USD economy on a % YoY growth rate basis. But a 5 % growth on 22 trillion USD is 110 billion. Whereas 10 % growth on 10 trillion is 100 billion. At least get your basics right.

And we have been hearing "China economy collapse" stories for, what, like 25-30 years now. If China didn't collapse back in 2008, why would it now? Exactly same points were made back then. Or is all this being done with some agenda?

 

[onebyone]

1. Japan — 234.7%: Easily the highest ratio of debt-to-GDP goes to Japan, which has seen its economy face a rapidly aging population and glacially slow rates of growth thanks to weak productivity in recent years.

2. Greece — 181.6%: The country is continuing to suffer since the sovereign debt crisis of 2010. It is still struggling to make debt repayments after being bailed out continually by international creditors and is still in full force of a stringent austerity drive.

A Greek national flag flutters next to a statue of ancient Greek goddess Athena, in Athens May 21, 2015. Reuters

http://www.businessinsider.com/coun...n-debts-which-has-perpetuated-its-problems-19

Debt is a function and a fixture of any working economy. Governments borrow to fund spending on things like roads, hospitals, and schools, as well as to fund promises like tax cuts.

Debt-to-GDP ratios around the world have increased in recent years as governments take advantage of historically low interest rates to pile up cheap debt before rates inevitably begin to rise.

Borrowing is a good thing for a working economy, but unchecked borrowing can be a bad thing, especially in an economic downturn. Even cheap debt can become unaffordable if a country has too much of it and output begins to slow.

The level of gross government debt as a percentage of GDP can indicate how able a country is to pay back debts without incurring further debt. Basically the lower the debt-to-GDP ratio the better.

The CIA's annual World Factbook, a huge and pretty comprehensive compilation of data and statistics from all over the world, includes figures on nations' debt-to-GDP ratios from around the world.

Numbers are given as a percentage of GDP, so if a country has a GDP of £100 billion and a gross debt of £110 billion, it has a debt-to-GDP ratio of 110%. Here are the 23 nations with the highest debt-to-GDP ratio:

 

[windywine]

It looks like just government or public debt to gdp ratio. When we talk about debt, it must be clear which sector: government sector, financial enterprise, non-financial corporations and household sector, or total.

I saw that too many people picked up China's total debt or debt of non-financial corporations and compared with other counties' government debt with aim to make stories like China is in dangerous position and is going to collapse.

The total debt for Japan is much worse (around 400% gdp of Japan).

 

[Suika]

Japan's debt is mostly owned by Japanese banks, including the Bank of Japan, which holds about 40% of all Japanese Government Bonds. So most of the money that the Japanese government pays (with the added on interest) goes back to Japan. So in effect, over the long term, Japan is making money off of its debt. There is of course a limit to how much debt can be serviced at any one time. The selling of government bonds can be influenced by reducing the interest rate on those bonds. The interest rate differs depending on which maturity year bond type, but generally, all the bonds have had their interest reduced. The effect on that is that the interest on them is less. But it also means that there is less profit to be made by the bond owner because the interest is less. So in the last few years, with the interest rates going down to close to zero (and at one point, one of the bonds went into negative territory for about 6 months) the ratio of buyers being the BoJ has increased, likely because only the BoJ is more willing to buy Japanese bonds at such low interest rates than anyone else. At the moment, only about 10% of Japanese Government bond holders are foreign.

This is very different compared to Greece, who owes almost all of that debt not to itself but to a foreign country.

Also here is something to consider. External debt.
https://en.wikipedia.org/wiki/List_of_countries_by_external_debt

The following article is 6 years old but it explains a little as to why these European countries have such high levels of external debt.

---start---
The UK has $4.36 for each $1.00 of GDP. It owes hundreds of billions to Germany and Spain-- while its banks are on the hook to Ireland, Italy and Portugal.

Spain owes $2.84 for every $1.00 of GDP-- including large amounts to Germany and France. France comes close to Spain with $2.25 of debt for every $1.00 of GDP. Germany has $1.76 of debt for each $1.00 of GDP.

So, if the IMF needs $794 billion to bail out Italy-- which has only $1.63 of debt for each dollar of GDP-- it suggests the cost of stabilizing all Europe is going to be quite a few trillions.

By comparison, the U.S. looks in quite a lot less trouble, since our foreign debt is $1.01 to every $1.00 of debt-- with the largest amount held by China and Japan .

Of course, Italy's need for a transfusion ism made immediately necessary by a borrowing rate of over 7.00%. Spain and France have the next highest borrowing costs. Germany only need pay some slight amount over 2.00% to borrow 10 year money.
---end---
https://www.forbes.com/sites/robert...cannot-service-its-foreign-debt/#536c0f2f3258

 

[windywine]

Japan's debt is mostly owned by Japanese banks, including the Bank of Japan, which holds about 40% of all Japanese Government Bonds

Same thing to China. Most of China's debt is essentially owned by China government. Majority of China's total debt, which is owed by China's sate-owned corporations, are belonging to the China's state-owned banks. If Japan is not in dangerous position, then why is China?

More importantly, those China state-owned corporations added up tremendous asset through borrowing money from government-owned banks. Those asset like factories, ports, highways, railways and airports etc will be continuously stimulating the economy. That's unlike the countries like Japan, UK US or EU, of which a lot of debt owed by government is consumed by welfare and health care.