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What to do in the Coming Financial Earthquake

Labeled as strategy in Business and Marketing, started by Whizzbang, Jun 27, 2017

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  1. Whizzbang

    Whizzbang VIP Member ParkLogic Staff VIP ★★★★★★★★★★

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    I’ve written a number of articles over the past year on the looming problem of the Chinese debt situation. It’s currently just shy of 300% of GDP and this doesn’t bode well for domain investors reliant on cheap Chinese capital to purchase their domains at hugely inflated prices. So should we really panic?

    I saw the following charts in a recent Bloomberg article that puts the Chinese debt problem into perspective. What’s interesting about this chart is that China’s flatter line shows that it’s not getting as big a GDP bang for its debt buck compared to some other nations. Also notice that Germany is retiring debt even while sharply increasing its GDP per capita.

    [​IMG]

    The USA is continuing to increase debt while getting a lot of GDP per capita from it.....but the debt still continues to increase. At some stage the piper has to be paid and if the current trends continue it will be more when not if.

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  2. London555

    London555 Top Contributor VIP

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    Here's the ripple effect. The MASSIVE USA debt that is owned by China at these current rates. In short a time fuse and as you say not if but when. Jim Chanos (see Enron) has been short China in a big way for a long time. Great article thank you.
     
    Last edited: Jun 28, 2017
  3. NameShiba

    NameShiba Top Contributor VIP Gold Account Blue Account

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    Woof, this is disheartening.
     
  4. Whizzbang

    Whizzbang VIP Member ParkLogic Staff VIP ★★★★★★★★★★

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    Agreed - the US debt is largely owned by China and is the fuse. It's an illustration of just how interconnected the world financial system is......in some ways it's frightening! The question that all domain investors should ask is how they can insulate themselves from a bigger financial downturn than the GFC of 2008.
     

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