The Disturbing Reality of China's Debt Crisis

💸China's total domestic debt has surged to over 343 trillion yen, far exceeding the total deposit amount of the entire society.

📉Defaults on personal and corporate debt are increasing, with falling house prices and declining income contributing to the financial crisis.

💰Local governments are running out of money, leading to a halt in essential services and unpaid wages for workers.

📈The Chinese government is resorting to debt issuance and printing money to repay old debts, risking hyperinflation and an unanchored currency.

🔒China's debt crisis is a result of unsustainable borrowing and a debt-dependent model, with ordinary people and private enterprises unable to afford more debt.

What is the debt to deposit ratio in China?

—The debt to deposit ratio in China has exceeded 100%, indicating overall losses and a spending-exceeding-earning situation.

Why are defaults on personal and corporate debt increasing?

—Falling house prices, bankruptcies of small and medium-sized enterprises, and declining income contribute to the increasing defaults on personal and corporate debt.

Why are local governments running out of money?

—Local governments rely on land sales revenue, which has sharply declined due to falling house prices. They are also burdened by repayment obligations, leading to a halt in essential services.

Why is the Chinese government resorting to debt issuance and printing money?

—The Chinese government is using debt issuance and money printing to repay old debts, but this drains liquidity from the financial market and risks hyperinflation and an unanchored currency.

Who is affected by China's debt crisis?

—The debt crisis in China affects individuals, corporations, local governments, and the overall economy. Defaults on loans, unpaid wages, and declining services are all consequences of the crisis.

00:00China is facing a growing debt crisis that encompasses personal, corporate, and government debt.

03:36The debt to deposit ratio in China has exceeded 100%, indicating overall losses and a spending-exceeding-earning situation.

08:00Defaults on personal and corporate debt are increasing, with falling house prices and declining income contributing to the financial crisis.

12:59Local governments are running out of money, leading to a halt in essential services and unpaid wages for workers.

13:28The Chinese government is resorting to debt issuance and printing money to repay old debts, risking hyperinflation and an unanchored currency.