Consequences of Owing Debt to the Chinese If China called in all of its U.S. holdings, the U.S. dollar would depreciate, whereas the yuan would appreciate, making Chinese goods more expensive.
If China (or any other nation having a trade surplus with the U.S.) stops buying U.S. Treasuries or even starts dumping its U.S. forex reserves, its trade surplus would become a trade deficit—something which no export-oriented economy would want, as they would be worse off as a result.
While this number may seem large, the total amount of U.S Treasuries outstanding is more than 30 trillion dollars. And, China isn't even the largest foreign holder of American debt.
In 2021, according to the Green Finance & Development Center, Iraq emerged as the top recipient of Chinese financing through the BRI, totaling $10.5 billion, partly because of the absence of upfront conditionality.
Collating numbers released in the IMF's quarterly update on foreign exchange reserves, RBC's Sydney-based fixed income strategist Michael Turner said it appeared China held around $130 billion of the $730 billion Australian Government and quasi-government bonds in the market.
This continues the trend of increasing debt since the Global Financial Crisis (GFC). Since the beginning of the pandemic, Australian Government gross debt has increased from $534.4 billion in March 2019 to $894.9 billion as of 28 October 2022.
China is getting broadly old before getting broadly rich. That's a dark, demographic cloud on the socio-economic horizon. In 20 years, China's elderly will double from 10% to over 20% of the population. By 2050, 330 million Chinese will be over age 65, and China's “dependency ratio” for retirees could exceed 40%.
Japan, with its population of 127,185,332, has the highest national debt in the world at 234.18% of its GDP, followed by Greece at 181.78%.
Maldives' total debt amounts to MVR 86 billion by the end of 2020, MVR 44 billion of which is external debt, reported The Island Online. Forbes, collecting data from The World Bank report as of 2020, said that 97 countries across the globe are under Chinese debt.
The countries with the highest level of household debt based on OECD data are: Norway in first place, followed by Denmark and the Netherlands.
Key information about Australia Government Debt: % of GDP
Australia Government debt accounted for 47.7 % of the country's Nominal GDP in Jun 2021, compared with the ratio of 43.4 % in the previous year. Australia government debt to GDP ratio data is updated yearly, available from Jun 1999 to Jun 2021.
Most is said to be Chinese lending overseas, but there was $90 billion net departure of cash and deposits.
The country's net economic power would increase as more money was spent on goods and non-financial services—production rather than monetary intermediaries. We would be back to being able to consume what our country's economic capacity could produce. One in four of us live that way today.
Sovereign default is the failure by a country's government to pay its debt. Sovereign default may slow economic growth and is likely to bar further government borrowing from overseas investors for years. Wars and revolutions, mismanagement, and political corruption are among the leading causes of sovereign default.
China is facing a full-blown debt crisis with $8 trillion at risk as Xi Jinping eyes an unprecedented 3rd term.
Can the U.S. Pay Off its Debt? As budget deficits are one of the factors that contribute to the national debt, the U.S. can take measures to pay off its debt through budget surpluses. The last time that the U.S. held a budget surplus was in 2001.
An Unprecedented Progress
For over 40 years, China has been trying to improve the lives of the people living in extreme poverty in their country. In 2021, the government declared the success of its mission: lifting 770 million of its citizens out of poverty.
China achieved victory in the largest-scale battle against extreme poverty worldwide, as shown by the facts that 98.99 million rural residents, 832 impoverished counties and 128,000 poor villages had all been lifted out of absolute poverty, creating a miracle in human history, reads the paper.
On retirement, the balance of the personal account, including interest, is divided into 139 instalments to be paid out monthly over a ten-year period. In addition to the benefits paid out from the personal account, the worker also receives general pension payments, payable until death.
The Limitation Act 1969 (NSW) places time limits on the rights of a creditor to bring an action for the recovery of debts. In most cases a creditor or a debt collector must recover the debt, or commence court action to recover the debt, within 6 years of: the date on which the debt first arose or.
Australia has the fifth-highest amount of household debt in the world, coming in at around $86,000 per household. A new study from Invezz revealed Australian households ranked high on the list compared to the rest of the world, with debt far outweighing disposable income.
Total state debt across the six states is set to reach $688 billion (27% of GSP) by 2025-26, led by Victoria ($226 billion) and NSW ($221 billion).