However, unlike Mark Carney and Rachel Reeves, I am not an Economist. And I really wish someone would explain 'External Debt To GDP Ratio' to me ... and what this actually means in practice?
My understanding is that China overtook the USA in 'GDP by Purchasing Power Parity' around 2016 ... which is when all the crazy anti-China propaganda started. Certainly eliminating absolute poverty in what used to be the ninth poorest nation in the world in 1949, raising a further 800,000,000 people out of poverty, increasing life expectancy from 35 to 79, and rapidly expanding the burgeoning "middle classes" in China has transformed the country ... and rather put a spanner in the works of the capitalist narrative that "Socialism will never be successful". Evidently, 'Socialism with Chinese Characteristics' certainly works in China. No one in the history of the world ever complained about living longer or feeling more prosperous.
I visited 🇨🇳 just recently. The sheer scale of her growth and affordability far eclipse what we see in North America. Anti-🇨🇳 bashers should go see for themselves and learn some lessons in long term planning with a focus on the betterment of its citizens. Warmongering sucks up valuable resources at the expense of citizens’ welfare. 🇨🇳 seeks to spread her common prosperity with the world where capitalist profits are secondary.
I lived in Shanghai from 2012 to 2018 (coinciding with Xi Jinping becoming the new Leader). For the first year, the skies were grey and no stars were visible at night. CNY was a fortnight of noisy firecrackers starting at dawn and seemingly never letting up. With every birth, birthday, anniversary, job promotion, the locals let off more joyful fireworks in celebration of something practically every day. Then it stopped (the noise not the celebrations) as China embraced silent fireworks; now they have magnificent drone displays for all national or regional holidays - a GOOD use for this new technology. Construction work continued apace - new roads, overpasses, underpasses, tunnels, railways, metros, high rise accommodation and magnificent sky scrapers containing shops, medical facilities and business premises. Gorgeous shopping malls and plazas with every culinary delight and entertainment imaginable. Smart young professionals with their adored child (and increasingly two or three children), happy and prosperous grandparents, all 56 different Chinese ethnicities living and loving life in perfect harmony. The streets were spotless, the nightlife was fabulous, and the SAFETY on the streets was remarkable - no muggers, no casual theft, no violence. I fell in love with this amazing country and would urge everyone to book a holiday there - not just Shanghai or Beijing, but also Hangzhou, Chongqing, Xinjiang, Xizang, Inner Mongolia, etc. See you for yourselves that almost everything written about China in the West is a carefully constructed lie. Market Socialism works and our Governments should aim for 'Socialism with British/Canadian/Australian/French/German/etc Characteristics'. Another life is possible.
It’s basically a country’s foreign credit-card balance compared to its yearly income. The bigger the number, the more exposed the country is to outside financial pressure.
But what’s the Opportunity Cost of that rise? I agree, debt for cautious growth was worth it in the last century. Debt/GDP and the addiction for growth at all costs will destroy us. Carney’s book Value(s) critiques GDP obsession and market failures echoing Donut themes.
We need new metrics - the Donut economy is a framework created by economist Kate Raworth to redefine success beyond GDP growth, balancing human needs with planetary limits.
Amsterdam, Brussels, Copenhagen and Nanaimo BC use it to emphasize collaboration over extra taxpayer costs. Check it out - this might be our salvation. 💙
Governments running a fiat currency do no amass "extra" funds by running a surplus because they are the currency issuer and so can create as much money as they want. This is how the banks were bailed out in 2008.
This chart has fascinated me for years. https://usdebtclock.org/world-debt-clock.html
However, unlike Mark Carney and Rachel Reeves, I am not an Economist. And I really wish someone would explain 'External Debt To GDP Ratio' to me ... and what this actually means in practice?
My understanding is that China overtook the USA in 'GDP by Purchasing Power Parity' around 2016 ... which is when all the crazy anti-China propaganda started. Certainly eliminating absolute poverty in what used to be the ninth poorest nation in the world in 1949, raising a further 800,000,000 people out of poverty, increasing life expectancy from 35 to 79, and rapidly expanding the burgeoning "middle classes" in China has transformed the country ... and rather put a spanner in the works of the capitalist narrative that "Socialism will never be successful". Evidently, 'Socialism with Chinese Characteristics' certainly works in China. No one in the history of the world ever complained about living longer or feeling more prosperous.
I visited 🇨🇳 just recently. The sheer scale of her growth and affordability far eclipse what we see in North America. Anti-🇨🇳 bashers should go see for themselves and learn some lessons in long term planning with a focus on the betterment of its citizens. Warmongering sucks up valuable resources at the expense of citizens’ welfare. 🇨🇳 seeks to spread her common prosperity with the world where capitalist profits are secondary.
I lived in Shanghai from 2012 to 2018 (coinciding with Xi Jinping becoming the new Leader). For the first year, the skies were grey and no stars were visible at night. CNY was a fortnight of noisy firecrackers starting at dawn and seemingly never letting up. With every birth, birthday, anniversary, job promotion, the locals let off more joyful fireworks in celebration of something practically every day. Then it stopped (the noise not the celebrations) as China embraced silent fireworks; now they have magnificent drone displays for all national or regional holidays - a GOOD use for this new technology. Construction work continued apace - new roads, overpasses, underpasses, tunnels, railways, metros, high rise accommodation and magnificent sky scrapers containing shops, medical facilities and business premises. Gorgeous shopping malls and plazas with every culinary delight and entertainment imaginable. Smart young professionals with their adored child (and increasingly two or three children), happy and prosperous grandparents, all 56 different Chinese ethnicities living and loving life in perfect harmony. The streets were spotless, the nightlife was fabulous, and the SAFETY on the streets was remarkable - no muggers, no casual theft, no violence. I fell in love with this amazing country and would urge everyone to book a holiday there - not just Shanghai or Beijing, but also Hangzhou, Chongqing, Xinjiang, Xizang, Inner Mongolia, etc. See you for yourselves that almost everything written about China in the West is a carefully constructed lie. Market Socialism works and our Governments should aim for 'Socialism with British/Canadian/Australian/French/German/etc Characteristics'. Another life is possible.
First-hand experience always matters Juliette. China’s development achievements are real and historically significant.
But every system has trade-offs... economic success, political freedom, social control, innovation, security.
The interesting conversation isn’t “which system wins.”
It’s what we can learn from each without losing what we value.
China demonstrates what long-term industrial policy and infrastructure investment can achieve.
Western economies demonstrate what open markets, innovation ecosystems, and individual freedoms can achieve.
It’s basically a country’s foreign credit-card balance compared to its yearly income. The bigger the number, the more exposed the country is to outside financial pressure.
USA is in final stages of decline, loan called in , no one wants to lend, dollar will loose its world status
Debt is a giant hole people and countries dig themselves into. VIG is the price you pay for being an idiot.
Every superpower in history used debt to rise.
The trick isn’t avoiding it.
It’s making sure it pays you back.
But what’s the Opportunity Cost of that rise? I agree, debt for cautious growth was worth it in the last century. Debt/GDP and the addiction for growth at all costs will destroy us. Carney’s book Value(s) critiques GDP obsession and market failures echoing Donut themes.
We need new metrics - the Donut economy is a framework created by economist Kate Raworth to redefine success beyond GDP growth, balancing human needs with planetary limits.
Amsterdam, Brussels, Copenhagen and Nanaimo BC use it to emphasize collaboration over extra taxpayer costs. Check it out - this might be our salvation. 💙
Your analysis is fundamentally flawed.
Governments running a fiat currency do no amass "extra" funds by running a surplus because they are the currency issuer and so can create as much money as they want. This is how the banks were bailed out in 2008.
Government debt is more correctly understood as the accumulated surplus of the non-government sector: https://en.wikipedia.org/wiki/Sectoral_balances
The real limiting factor for fiat is the productive capacity of the economy.
Having said that de-dollarisation is a significant risk for the US.
Sovereign issuers can create money.
They can’t create trust.
Confidence is the real constraint.