Quote:
Originally Posted by Hemi-Cuda
so who owns all that debt? is it all China?
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China actually has an enormous debt problem issue as well and may have a debt-to-GDP ratio similar to America.
http://www.bloomberg.com/apps/news?p...d=aN94MF7BDx_A
China owns about $800 billion in US debt I believe.
A Chinese recession in 2012 would be a big deal.
Most economies, particularly in the first world like the USA, suffered enormous cuts in tax revenues in 2008-09 and can likely see those eventually restored in better economic times. Those lost revenues in turn help trim current deficits enormously. I think the estimate I saw was USA tax revenues dropped by one-third by the end of the economic downturn.
Today we saw an announcement of roughly 300,000 new jobs created in the USA which in turn means more tax revenue. Companies are again booking profits. Etc, etc.
Cowperson