China heading for debt disaster, sure sureBY BENJAMIN ONG | TUESDAY, 14 JAN 2014 10:10AMChina has become the world's tallest poppy. It must be cut down! Related News |
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Philip Miall
HEAD OF MULTI-SECTOR PRIVATE DEBT
QIC LIMITED
QIC LIMITED
QIC head of private debt Australia Phil Miall's nearly 30 years' experience covers every corner of the credit market. He shares why active management is critical in the asset class and what he's learned during periods of tumult. Karren Vergara writes.
what about the shadow banking? Isn't all debt inclusive of shadow banking being estimated at around 200% of GDP? I think your missing that point....
As someone living in Australia the economic well being of China looms large. The mining boom, courtesy of China, has allowed Australia to largely ignore our growing productivity problems. Any slowdown in China will likely see many Australian's out of a job because other than commodities there is not much we produce or make anymore that the world actually wants. Moreover, Australian household debt levels are among the highest in the world so if you're average Aussie loses his or her job more than a few of us will be in real financial trouble. China bashing maybe, but for Australia all it will take is a modest China slowdown to trigger a potentially deep recession.
I am a German who have been living in China since almost 10 years now, I must say that I agree with all of this, the country is heading toward a social, economical, environmental and political disaster. The wealth gap is higher than anywhere else in the world, I am living in Guangdong where massive social unrests with the presence or anti-riot police and sometimes the army happen on a daily basis in some industrial cities like Donggan or Foshan, on a smaller scale in Guangzhou and Shenzhen industrial districts.
Politically the CCP is seriously divided since the arrest of Bo Xilai a few years ago, they constantly stab each other in the back and the urgently needed amendments (in China everything is done on a short term) are much slower to be voted and enforced due to the clash between the pro and anti Jinping.
Environmentally the country has never been so polluted, if you think that major cities such as Shanghai, Beijing or Guangzhou are polluted, wait to see the countryside, farmers there wouldn't eat their own rice grown using heavily polluted water full of chemicals and heavy metals.
I am out of here next year, China was a great place full of nice people, now they all got this "competition/comparison mindset" and I hate it, one example you can't go to the gym on a treadmill without having a childish Chinese dude coming next to you on another treadmill and putting his speed at 1km/h faster than you to show how he can do it better than you do, of course he give up after 15 minutes because he can't keep it up, but I hate this childish behavior, constantly comparing themselves with other people, especially with foreigners.