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China Bust
#1
"China has failed to curb excesses in its credit system and faces mounting risks of a full-blown banking crisis, according to early warning indicators released by the world’s top financial watchdog.

A key gauge of credit vulnerability is now three times over the danger threshold and has continued to deteriorate, despite pledges by Chinese premier Li Keqiang to wean the economy off debt-driven growth before it is too late.

The Bank for International Settlements warned in its quarterly report that China’s "credit to GDP gap" has reached 30.1, the highest to date and in a different league altogether from any other major country tracked by the institution. It is also significantly higher than the scores in East Asia's speculative boom on 1997 or in the US subprime bubble before the Lehman crisis."


[Image: Image_1_20160921_OTB.jpg]


Full Story Here:     http://www.telegraph.co.uk/business/2016...-in-china/
"Sooner or later everyone sits down to a banquet of consequences."  -- RLStevenson
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#2
You could easily replace China with "The World".  Smile
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#3
It's all smoke n mirrors folks, the table is tilted, the game is rigged, and you trust the MoneyChangers & FED at your own risk n peril.
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#4
Canada's Private Debt to GDP is now above 100% as well. Ouch.
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#5
Bottom line is the whole loaded massive debt... Just wait for the end... Which is not pretty for sure...
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#6
(09-22-2016, 03:15 PM)StingingNettle Wrote: Canada's Private Debt to GDP is now above 100% as well.  Ouch.

Yup, we never suffered from the housing bust that our American cousins did. Our prices and associated debt have well exceeded anything seen down there in '06.

Too many people see low interest rates as an excuse to binge even more. I have been preaching to view it as a once in a multi-generational opportunity to pay down debt quickly. Not many people want to listen to me though.

Why live within your means when it is so easy to live well beyond it?
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#7
AMERICANS DON'T JUST LIVE WITHIN THIER MEANS, NO THEY PREFER TO LIVE BYEYOND THIER WILDEST DREAMS OR WELL BEYOND THIER "CREDIT COPASITY" FOR DAMN SURE...
AS THINGS TIGHTEN, MANY ARE GETTING THAT "RUDE AWAKENING"
BUT THE UGLY TRUTH IS, AMERICANS WONT ADJUST UNTILL THEY " HAVE NO OTHER OPTION/CHOICE" and they will kick n scream the whole damn time that its "NOT THIER OWN DAMNED FAULT" Angry
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#8
Your advice is both wise and practical, Brunt. The modest wealth my wife and I enjoy is directly attributable to doing exactly as you describe. We worked our way through university, got reasonable paying jobs and for about fifteen years lived off one salary and invested the other salary. We aren't rich people any any means, but we did manage to help both kids through the U. of Georgia including a semester of study abroad, one at Oxford the other at Cambridge, without us or them incurring any debt to do that, pay for the house and acreage we bought ion 1978 and still live in and still have a nest egg to supplement our retirement incomes and provide a financial cushion. I can't say enough good about the virtue of living below one's means.

The only fly in the ointment is that medical expenses, especially for my wife, are really beating us up now.
I dream of an America where a chicken can cross the road without having it's motives questioned.
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#9
(09-22-2016, 06:34 PM)matlock Wrote: AMERICANS WONT ADJUST UNTILL THEY " HAVE NO OTHER OPTION/CHOICE" and they will kick n scream the whole damn time that its "NOT THIER OWN DAMNED FAULT" Angry

Scarily TRUE

and while their "scream" may be no big deal

their "kicking" might be a very sad SCARY thing to live thru!!
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#10
(09-22-2016, 04:40 PM)brunt Wrote:
(09-22-2016, 03:15 PM)StingingNettle Wrote: Canada's Private Debt to GDP is now above 100% as well.  Ouch.

Yup, we never suffered from the housing bust that our American cousins did. Our prices and associated debt have well exceeded anything seen down there in '06.

Too many people see low interest rates as an excuse to binge even more. I have been preaching to view it as a once in a multi-generational opportunity to pay down debt quickly. Not many people want to listen to me though.

Why live within your means when it is so easy to live well beyond it?

And people wonder why the Chinese are buying property outside of China as fast as they can!

These are the rats getting their money out whilst the going is good.

Everyone knows the Chinese must devalue or go bust. But that means a loss of purchasing power for the new middle class and a massive loss of 'face' for the Communist Party.

My thought: I need to cash out of this property market ASAP and retire.
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