China Is On A Debt Binge And A Buying Spree Unlike Anything The World Has Ever Seen Before
By Michael Snyder
When it comes to reckless money creation, it turns out that China is the
king. Over the past five years, Chinese bank assets have grown from
about 9 trillion dollars tomore than 24 trillion dollars. This has been fueled by the greatest private debt binge that the world has ever seen. According to a recent World Bank report, the level of private domestic debt in China has grown from about 9 trillion dollars in 2008 to more than 23 trillion dollars today.
In other words, in just five years the amount of money that has been
loaned out by banks in China is roughly equivalent to the amount of debt
that the U.S. government has accumulated since the end of the Reagan
administration. And Chinese bank assets now absolutely dwarf the assets
of the U.S. Federal Reserve, the European Central Bank, the Bank of
Japan and the Bank of England combined.
You can see an amazing chart which shows this right here.
A lot of this "hot money" has been flowing out of China and into U.S.
companies, U.S. stocks and U.S. real estate. Unfortunately for China
(and for the rest of us), there are lots of signs that the gigantic debt
bubble in China is about to burst, and when that does happen the entire
world is going to feel the pain.
It was Zero Hedge that initially broke this story. Over the past several years, most of the focus has been on the reckless money printing that the Federal Reserve has been doing, but the truth is that China has been far more reckless...
