Jump to content
House Price Crash Forum

Post Your Favourite Charts Here


Recommended Posts

0
HOLA441

image006.png

That seems to suggest that since the global financial crisis (GFC) Chinese household debt has been growing annually at an average rate of about +27% a year as a percent of GDP - and annually averaging maybe +15% for the years shown before the GFC.

So since the economic collapse (say 7 years ago) it would have increased by a factor of about 5 times? A pretty staggering amount (and not to mention how much it must have increased additionally if taking into account all the additional years back to 1987 - when the Chinese data starts in the chart).

If so then no wonder so many wealthy Chinese have been turning up in the UK to buy up UK/London housing and setting the house prices. Not only do the UK people have to contend with the UK's own debt but they have to contend with Chinese debt growing exponentially as well - and that with the Chinese economy already more than 3 times the size of the UK'S in GDP terms. Crazy crazy crazy stuff from the people "running" the UK economy and of course the UK VIs are just looking to line their own pockets.

According to the link below UK household debt has delevered a bit as a percentage of GDP (page 26 chart) and as a percentage of household income (page 7 chart) since the GFC.

Edited by billybong
Link to comment
Share on other sites

  • Replies 1.7k
  • Created
  • Last Reply

Top Posters In This Topic

1
HOLA442
2
HOLA443
3
HOLA444
4
HOLA445
5
HOLA446
6
HOLA447

House sizes across the world with the UK at the bottom of the list as smallest

http://greenlivingpedia.org/House_size_comparisons

Country House size (m²)
Australia 214.6
United States 201.5
New Zealand 196.2
Denmark 137.0
Greece 126.4
Belgium 119.0
Netherlands 115.5
France 112.5
Germany 109.2
Luxembourg 104.1
Spain 96.6
Austria 96.0
Ireland 87.7
Finland 87.1
Sweden 83.0
Portugal 82.2
Italy 81.5
United Kingdom 76

They might be the smallest but they're amongst the most expensive.

Edited by billybong
Link to comment
Share on other sites

7
HOLA448
8
HOLA449
9
HOLA4410
10
HOLA4411
  • 2 weeks later...
11
HOLA4412

The link below shows oil production by country. Dated 2009 but interesting for relative production figures (then).

Posted for the data - not for any opinions expressed in the text (opinions which could be right or could be wrong).

Edited by billybong
Link to comment
Share on other sites

12
HOLA4413
13
HOLA4414

Dated 2010

http://investmentwatchblog.com/economic-growth-per-dollar-of-debt-increase/

Economic growth per dollar of debt increase:

Dated 09/12/2013

http://www.zerohedge.com/news/2013-09-12/five-years-later-18-dollars-debt-every-dollar-gdp-total-g7-debtgdp-440

Five Years Later: 18 Dollars Of Debt For Every Dollar Of GDP

Edited by billybong
Link to comment
Share on other sites

14
HOLA4415
15
HOLA4416
16
HOLA4417
17
HOLA4418
18
HOLA4419

"Debt Is The Cause, Not The Cure"- Why $19 Trillion In Debt 'Is' A Problem

http://www.zerohedge.com/news/2016-05-02/debt-cause-not-cure-why-19-trillion-debt-problem

...

The economy is currently requiring roughly $4 of debt to create $1 of economic growth. A reversion to a structurally manageable level of debt would involve a nearly $30 Trillion reduction of total credit market debt from current levels.

...

Debt-Structurally-Maintainable-Level-022

(The $4 to $1 ratio seems to apply to government debt - total increase in debt (2009 to 2015) is $7.75 trillion, total increase in real GDP is $2.08 trillion so $ of debt/$1 of GDP IS 3.71)

US total debt is about £62 trillion (government debt is about $18/19 trillion)

US GDP is about $19 trillion.

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

2% GDP growth is about $0.4 trillion. So extra government debt for 2% GDP growth is currently about $1.6 trillion a year when they already have difficulty servicing the massive existing debt.

Need to reduce total debt by $30 trillion (down from $60 trillion) when they always want to increase it.

https://www.washingtonpost.com/news/the-fix/wp/2015/01/07/the-story-behind-obama-and-the-national-debt-in-7-charts/

..................the national debt has increased by $7.4 trillion. On January 20, 2009, it stood at $10.6 trillion; on Monday, it was at $18 trillion.

Edited by billybong
Link to comment
Share on other sites

19
HOLA4420

China


Jan. 6, 2016

http://uk.businessinsider.com/china-debt-to-gdp-statistics-2016-1

How China accumulated $28 trillion in debt in such a short time

That's $28 trillion total debt

Government debt currently about $5.4 trillion.

Chinese GDP is about $10 trillion.

(For comparison the US total debt is about $62 trillion and the government debt is about $19 trillion - GDP about $19 trillion).

http://www.zerohedge.com/news/2016-01-28/could-be-problem-chinas-debt-gdp-rises-gargantuan-346

http://www.zerohedge.com/news/2016-04-24/chinas-brave-new-math-24-28-provinces-report-higher-gdp-national-average

Using the US ratio of 4/1 in the post above this one then to get their 6% annual GDP "growth" (about $0.6 trillion extra growth each year) it would suggest that their debt would have to increase by about $2.4 trillion annually (using the 4/1 ratio).

However apparently their debt actually grew by at least $1 trillion in three months which would be an extra $4 trillion annually (rather than the $2.4 trillion).


http://www.zerohedge.com/news/2016-04-24/chinas-brave-new-math-24-28-provinces-report-higher-gdp-national-average

And since in the subsequent three months, China added another $1 trillion in loans or about 10% of GDP

So an extra $4 trillion annually seems to imply that for an extra annual growth figure of $0.6 trillion (6%) they actually have a $ of debt/$1 of GDP ratio of about 6.7/1 - of course in reality it might seem to be anyone's guess.

In any event whatever the actual growth figure actually is or will be it seems that their total debt/GDP ratio is increasing by about 40% a year.

Edited by billybong
Link to comment
Share on other sites

  • 2 weeks later...
20
HOLA4421

Canada

According to tradingeconomics

Canada's GDP is about 1.785 trillion US dollars (2014 figure).

Canada's private sector credit is about 3.67 trillion Canadian dollars (February 2016 figure) = 2.82 trillion US dollars (1.3 exchange rate).

So that would make private sector debt to GDP ratio of about 158%.

http://www.tradingeconomics.com/canada/gdp
GDP in Canada is reported by the World Bank Group

http://www.tradingeconomics.com/canada/private-sector-credit
Private Sector Credit in Canada is reported by the Statistics Canada

​Add in government, corporate and financial institution debt and the ratio for total debt relative to GDP must be over 300%.

(Not including any off balance sheet debt and other liabilities).

Edited by billybong
Link to comment
Share on other sites

21
HOLA4422
22
HOLA4423

UK


Dated January 3, 2016

http://www.primeeconomics.org/articles/1ovlcjevgwisgyoxbt8by6k0sbnu7s

2015: Private Debt and the UK Housing Market

Moderate growth in the mortgage market may conceal deeper problems: household debt-to-income ratios have fallen since the crisis but, at around 140% of GDP, remain high both in historical terms and compared to other advanced nations.

According to eurostat Private sector debt, consolidated - % of GDP was about 158% in 2015

http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tipspd20&plugin=1

Edited by billybong
Link to comment
Share on other sites

23
HOLA4424
24
HOLA4425

http://www.zerohedge.com/news/2016-05-22/time-now-markets-price-chinas-next-slowdown-gloomy-morgan-stanley-warns

With it now taking 6.5 units of debt to produce 1 unit of GDP, additional gains from the lending channel are limited, in our view. China data already suggest diminishing returns from a flagging stimulus.

Edited by billybong
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information