• skolor
    +8

    Note that this is not their federal debt, they're talking about privately held debt.

    When I was looking into this, I came across this article, which speculates that this type of high ratio of private debt to GDP is indicative of a financial buble. In particular, it draws comparisons of China right now to the US in 2008 and Japan during their crisis in the early 90's.

    • NotWearingPants
      +1

      Yeah, there is no way that is sustainable. The question is how long can they keep blowing up the bubble before it pops. And what happens after.