{"id":21781,"date":"2016-09-23T14:06:09","date_gmt":"2016-09-23T19:06:09","guid":{"rendered":"http:\/\/olduvai.ca\/?p=21781"},"modified":"2016-09-23T14:06:09","modified_gmt":"2016-09-23T19:06:09","slug":"the-bank-for-international-settlements-warns-that-a-major-debt-meltdown-in-china-is-imminent","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=21781","title":{"rendered":"The Bank For International Settlements Warns That A Major Debt Meltdown In China Is Imminent"},"content":{"rendered":"
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The Bank For International Settlements Warns That A Major Debt Meltdown In China Is Imminent<\/a><\/h3>\n<\/div>\n
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\"chinese-money-public-domain\"<\/a>The pinnacle of the global financial system is warning that conditions are right for a \u201cfull-blown banking crisis\u201d in China.\u00a0 Since the last financial crisis, there has been a credit boom in China that is really unprecedented in world history.\u00a0 At this point the total value of all outstanding loans in China has hit a grand total of more than 28 trillion dollars.\u00a0 That is essentially equivalent to the commercial banking systems of the United States and Japan\u00a0combined<\/strong>.\u00a0 While it is true that government debt is under control in China, corporate debt is now 171 percent of GDP, and it is only a matter of time before that debt bubble horribly bursts.\u00a0 The situation in China has already grown so dire that the Bank for International Settlements\u00a0is sounding the alarm<\/a>\u2026<\/p>\n

A key gauge of credit vulnerability is now\u00a0three times over the danger threshold<\/strong>\u00a0and has continued to deteriorate, despite pledges by Chinese premier Li Keqiang to wean the economy off debt-driven growth before it is too late.<\/p>\n

The Bank for International Settlements warned in its quarterly report that China\u2019s \u201ccredit to GDP gap\u201d\u00a0has reached 30.1<\/strong>, the highest to date and in a different league altogether from any other major country tracked by the institution. It is also significantly higher than the scores in East Asia\u2019s speculative boom on 1997 or in the US subprime bubble before the Lehman crisis.<\/p>\n

Studies of earlier banking crises around the world over the last sixty years suggest that\u00a0any score above ten requires careful monitoring<\/strong>.<\/p><\/blockquote>\n

If you are not familiar with the Bank for International Settlements, just think of it as the capstone of the worldwide financial pyramid.\u00a0 It wields enormous global power, and yet it is accountable to nobody.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Bank For International Settlements Warns That A Major Debt Meltdown In China Is Imminent The pinnacle of the global financial system is warning that conditions are right for a \u201cfull-blown banking crisis\u201d in China.\u00a0 Since the last financial crisis, there has been a credit boom in China that is really unprecedented in world history.\u00a0 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1733,61,130,8898,14344,175,11752,195,8444,14345,3461,5983,312,11745,14346,488,14347,14348,4901,14349,14350,13070],"class_list":["post-21781","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-for-international-settlements","tag-banking","tag-china","tag-corporate-debt","tag-corporate-debt-in-china","tag-credit","tag-credit-boom","tag-debt","tag-debt-bubble","tag-debt-meltdown","tag-debts","tag-economiccollapseblog","tag-financial-crisis","tag-financial-crisis-2016","tag-full-blown-banking-crisis","tag-loans","tag-major-debt","tag-major-debt-meltdown","tag-michael-snyder","tag-outstanding-loans","tag-the-bank-for-international-settlements","tag-the-global-financial-system"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21781"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21781\/revisions"}],"predecessor-version":[{"id":21782,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/21781\/revisions\/21782"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}