Property Advertisement - AMO Residence for sale!

Property Advertisement - AMO Residence for sale!
Click on the banner for more details.

Search This Blog

Friday, May 19, 2017

Fearmongering by USA for China's debts.

I really find this weird.  It seems to me that it's alright for USA to have high debts but not for China.

https://sg.finance.yahoo.com/news/chanos-says-more-stresses-apparent-043117903.html

USA household debts have reached USD$12.73b and the USA national debt is at USD$19.84t but all these debts won't hurt USA banks at all.  However, China's debts will hurt Chinese banks.  USA national debt of USD$19.84t is larger than China's GDP of USD$11t and it is able to accumulate such high debt because of USD reserve status.

Once this USD confidence is undermined, USA will go bankrupt and people around the world will lose confidence in USA banks too because nobody wants USD anymore.

No comments: