{"id":23023,"date":"2017-02-27T21:03:30","date_gmt":"2017-02-28T02:03:30","guid":{"rendered":"http:\/\/olduvai.ca\/?p=23023"},"modified":"2017-02-27T21:03:30","modified_gmt":"2017-02-28T02:03:30","slug":"china-accounts-for-half-of-all-global-debt-created-since-2005-here-are-the-implications","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=23023","title":{"rendered":"China Accounts For Half Of All Global Debt Created Since 2005: Here Are The Implications"},"content":{"rendered":"

China Accounts For Half Of All Global Debt Created Since 2005: Here Are The Implications<\/a><\/h3>\n
\n
\n

Over three years ago, in November 2013, when the world’s attention was still largely focused on what the “Big 4” central banks would do with QE and\/or interest rates, we wrote an article\u00a0showing in one simple<\/a>\u00a0chart\u00a0 “How In Five Short Years, China Humiliated The World’s Central Banks<\/a>“, and noted that in just the brief period since the financial crisis “Chinese bank assets (and by implication liabilities) have grown by an astounding $15 trillion, bringing the total to over $24 trillion. In other words, China has expanded its financial balance sheet by 50% more than the assets of all global central banks combined.”<\/em><\/p>\n

Fast forward to today, when not only is China’s debt the biggest wildcard for the stability of the global financial system (recall last week\u00a0UBS observated\u00a0<\/a>that for the first time in years, the global credit impulse had tumbled to negative largely as a result of a slowdown in Chinese credit creation), but even central banks openly admit that China’s relentless debt-issuance spree is a major risk factor for global financial stability. One such bank is the NY Fed, which earlier today issued a report titled “China\u2019s Continuing Credit Boom<\/strong><\/a>“, which while containing nothing that regular readers don’t already know, provides a handy snapshot of the full extent of China’s debt problems.<\/p>\n

Here are some of the higlights:<\/em><\/p>\n