Comments on: China’s black box economy http://blogs.reuters.com/james-pethokoukis/2011/07/05/chinas-black-box-economy/ Politics and policy from inside Washington Sun, 07 Apr 2013 21:23:48 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: jim1981 http://blogs.reuters.com/james-pethokoukis/2011/07/05/chinas-black-box-economy/comment-page-1/#comment-12151 jim1981 Tue, 05 Jul 2011 22:23:01 +0000 http://blogs.reuters.com/james-pethokoukis/?p=8599#comment-12151 "Once local government debts, costs of re-capitalizing state-owned banks, bonds issued by state-owned banks, and railway bonds are included, China’s total debt amounts to 70 to 80 percent of GDP, roughly the level of public debt in the United States and the United Kingdom." It is clearly misguide and wrong statement. 80% of GDP is counting only US federal debt. If all local and state government added together using same measurement, it is way more than 80%. “Once local government debts, costs of re-capitalizing state-owned banks, bonds issued by state-owned banks, and railway bonds are included, China’s total debt amounts to 70 to 80 percent of GDP, roughly the level of public debt in the United States and the United Kingdom.”

It is clearly misguide and wrong statement. 80% of GDP is counting only US federal debt. If all local and state government added together using same measurement, it is way more than 80%.

]]> By: zhubajie http://blogs.reuters.com/james-pethokoukis/2011/07/05/chinas-black-box-economy/comment-page-1/#comment-12150 zhubajie Tue, 05 Jul 2011 21:58:09 +0000 http://blogs.reuters.com/james-pethokoukis/?p=8599#comment-12150 How does that compare to the paragon of economic powers - the United States? If you add up the total government obligations - unfunded pensions, social security, medical costs, etc., they total more than the assets in private hands in the U.S. ($55 Trillion), and would be 4 or 5 TIMES the GDP. I suppose it is all relative. When you go beyond a certain number, it matters not anymore. How does that compare to the paragon of economic powers – the United States? If you add up the total government obligations – unfunded pensions, social security, medical costs, etc., they total more than the assets in private hands in the U.S. ($55 Trillion), and would be 4 or 5 TIMES the GDP.

I suppose it is all relative. When you go beyond a certain number, it matters not anymore.

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