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The real take here is 'it depends'. The important number is the debt-to-GDP ratio for each country, and which countries we're talking about. The biggest debt

The real take here is 'it depends'. The important number is the debt-to-GDP ratio for each country, and which countries we're talking about. The biggest debt growth has been with China that now has a debt-to-GDP ratio of 255%. Does that number spell doom for China? Not really. It's high, but China can handle it. If it continues to grow in an uncontrolled fashion, it might be a different story. So in each case, each country is different story, and you have to look at them individually.

Aperocky 7y ago
The numbers are thrown around with nobody really understanding what they mean. China have a collective debt to GDP ratio of 255%, which means all persons, corporations, local government, and central government have a debt that collectively sum up to 2.5 times the GDP. The Central government itself have debt amounting to 47.6% of GDP. Meanwhile, US federal government have debt approaching 100% of American GDP, and guess what? Private people and corporations in US hold more debt, I have yet to find a comprehensive collective debt to economy ratio for the US, and I would very much appreciate that number since we can then compare apple to apple. Also, honorary mention to Japan, whose public government debt exceeded 200% of their economy.
- QuesnayJr 7y ago
  Wikipedia claims close to 300%: https://en.wikipedia.org/wiki/Financial_position_of_the_United_States https://en.wikipedia.org/wiki/Financial_position_of_the_Unit...
  - Aperocky 7y ago
    > The financial position of the United States includes assets of at least $269.6 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) From the first paragraph.
    - QuesnayJr 7y ago
      It says 279% in the second paragraph. (And in the third paragraph it says 350%.)
neffy 7y ago
I would beg to differ. China introduced loan securitization back in 2005 - and so there´s a quietly ticking time bomb there, similar to 2008´s US crash, that will eventually go off.

Aperocky 7y ago

The numbers are thrown around with nobody really understanding what they mean. China have a collective debt to GDP ratio of 255%, which means all persons, corporations, local government, and central government have a debt that collectively sum up to 2.5 times the GDP. The Central government itself have debt amounting to 47.6% of GDP. Meanwhile, US federal government have debt approaching 100% of American GDP, and guess what? Private people and corporations in US hold more debt, I have yet to find a comprehensive collective debt to economy ratio for the US, and I would very much appreciate that number since we can then compare apple to apple. Also, honorary mention to Japan, whose public government debt exceeded 200% of their economy.

QuesnayJr 7y ago
Wikipedia claims close to 300%: https://en.wikipedia.org/wiki/Financial_position_of_the_United_States https://en.wikipedia.org/wiki/Financial_position_of_the_Unit...
- Aperocky 7y ago
  > The financial position of the United States includes assets of at least $269.6 trillion (1576% of GDP) and debts of $145.8 trillion (852% of GDP) From the first paragraph.
  - QuesnayJr 7y ago
    It says 279% in the second paragraph. (And in the third paragraph it says 350%.)

neffy 7y ago

I would beg to differ. China introduced loan securitization back in 2005 - and so there´s a quietly ticking time bomb there, similar to 2008´s US crash, that will eventually go off.