I know you are getting sleepless nights just now worrying about the Chinese taking over the world. Well, everything isn't quite as rosy with them either. I just got this sent to me Moody's warns China over debt Credit rating agency Moody's has issued a warning on China, citing that the bad debts held by the local Chinese governments could potentially be a far bigger problem than initially estimated. According to data, Chinese banks had lent 8.5 trillion yuan, or £820 billion, to the local governments in 2010, in an attempt to boost growth. However, Moody's said that the debt burden could be 3.5 trillion yuan larger than auditors had estimated. The rating agency also warned that the bad debt could reach between 8% and 10% of the total loans. "When cross-examining the findings by the 27 June National Audit Office (NAO) report, in conjunction with reports from Chinese banking regulators, we find that the Chinese audit agency could be understating banks' exposures to local governments by as much as 3.5trillion yuan", said Yi Zhang of Moody's. Ms Zhang explained that since these loans were not covered by the NAO, they were not considered as real claims on local governments. "This indicates that these loans are most likely poorly documented, and may thus pose the greatest risk of delinquency", she added. Moody's also warned that given the scale of the problem, the credit outlook for China's banking sector could turn to negative
We need a big war, with conventional weapons, it'll thin out the population and provide a good material base for future war movies.
Thank **** for that. Seriously, why are they trying to boost growth in China? It's ****ing 15% or something like that. Or are they trying to boost domestic consumption by lending to local rice farmers to buy £3m houses in Peking?
I don't know the ins and outs of it, but we get emails of this variety sent to us all the time, so I will keep you informed, as I would hate for you to fork out on a new war bunker when it "might" not be needed!
I'm not worried about war, more the wealth of the West heading East. We've been at the forefront of innovation and technology since the 16th century. I'd hate to see that ending. Anyway, you should be pming these emails to me.
