China’s debt problem

RYAN  By Guest Blogger Ryan Lewenza

In recent blog posts Doug and I have the presented the bull case for China’s economy and more broadly emerging market (EM) equities. Last year we doubled up emerging market equity exposure in client accounts based on this bullish outlook, much to our clients benefit with EM equities up 30% last year. We continue to see good upside in EM equities but are closely monitoring one key risk to the Chinese economy – elevated corporate debt – which has the potential to provide a big negative shock to their economy and stock market in the coming years.

China’s transformation from a centrally planned, largely agrarian-based economy to the industrial powerhouse it is today has been nothing short of spectacular. Since 1980, 700 million Chinese have risen out of poverty, GDP per capita has increased from US$194 to US$8,833, and life expectancy has jumped from 70.5 years to 76.1. But much of this growth has been fueled by a dramatic rise in debt, which could make the country vulnerable down the road.

Just since 2004, Chinese corporate debt has surged from CN¥17 trillion (US$2.7 trillion) to CN¥132 trillion (US$20.7 trillion), representing the largest outstanding corporate debt in the world. As a percentage of GDP, debt has increased from 107% in 2004 to 160% today. To put this into perspective, US corporate debt currently stands at US$9 trillion or 46% of GDP.

What’s behind this historic build-up in debt?

China’s Corporate Debt Has Exploded in Recent Years

Source: Bloomberg, Turner Investments

In a word, infrastructure.

China has been spending heavily on infrastructure, with investment as a percentage of their economy rising from 35% in 1980 to 45% today. They’ve spent billions upon billions on much needed roads, buildings, airports, high speed trains etc., which has helped fuel their average 10% GDP growth over the last few decades.

Huge initiatives like the One Belt, One Road initiative proposed by President XI Jinping, called for infrastructure spending of US$5 trillion to help connect China with Eurasian countries, and is one example of these major investments that has contributed to the spending binge.

Much of this investment was sound and allowed the country to modernize and become the powerhouse it is today. However, some of these investments are likely to prove unproductive and problematic with some of these investments likely to go bad and the debt being written off.

A good example of these problematic investments is “China’s Ghost Cities”.

Over the last decade China has built dozens of these cities which house a 1+ million people and we’re built in anticipation of people moving from the rural countryside to large modern cities. Some of these cities sit largely vacant, hence the term “ghost city”.

There have been a number of great documentaries and specials on this. One of the best on the topic was a 60 Minutes special which can be viewed here https://www.youtube.com/watch?v=ei0FpwI1dqg.

Example of a Chinese Ghost City

Source: South China Morning Post

Debt, in and of itself is not the issue. It’s when it gets harder to meet the interest and principal payments that debt becomes an issue.

Often for these large build-ups in debt you need a “prick” or a catalyst for this nascent risk to set off and metastasize. I see two potential “pricks” that could bring this risk to the surface.

First, are higher interest rates. Currently, with interest rates in China and around the world at such low levels, the debt servicing costs remain relatively low despite record amounts of debt. But if interest rates start to spike then this will make servicing the debt that much harder and could be the catalyst that sets all this off.

China Interest Rates

Source: Bloomberg, Turner Investments

Second, is a material slowdown in China’s economy. Right now with China’s still high GDP growth they can meet the debt obligations. But was happens if their economy slows materially making it harder to pay off the debt. As the sage Warren Buffet once said, “you only find out who is swimming naked when the tide goes out.”

To be clear, I don’t see this as an imminent risk that is going to doom China and the global economy. I believe we’re still some years away from having to deal with this and why we continue to be constructive on China’s economy and EM stocks. Moreover, Chinese policymakers are going to do everything in their power to contain this growing risk. But I would not be surprised to see this issue on the front page of The Wall Street Journal over the next decade and it causing some stress to the global financial markets. The key then will be trying to getting ahead of it to ensure clients are minimally affected by this elephant (or more appropriate tiger) in the room.

Ryan Lewenza, CFA,CMT is a Partner and Portfolio Manager with Turner Investments, and a Senior Vice President, Private Client Group, of Raymond James Ltd.

95 comments ↓

#1 NoName on 04.28.18 at 4:00 pm

Yes finally, china debt grew astronomically from 2008 to now.

https://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/01/01/china%20chart%20imf.jpg

#2 For those about to flop... on 04.28.18 at 4:07 pm

Weekend Rewind

This week in howmuch articles.

I am for climate change.

Not worldwide,only in Canada…

M43BC

This Map will Show You the Best (and Worst) Cities to Make a Living.

https://howmuch.net/articles/10-cities-with-highest-lowest-average-annual-salary

Mapping the Economic Destruction of Climate Change in Every State.

https://howmuch.net/articles/the-economic-damage-from-climate-change-in-the-united-states

The Gun Industry’s Economic Impact in One Map.

https://howmuch.net/articles/how-much-gun-industry-impacts-your-state

#3 For those about to flop... on 04.28.18 at 4:10 pm

I see two potential “pricks” that could bring this risk to the surface.-InfLewenza.

/////////////////////

You leave Smoking Man and myself out of this…

M43BC

#4 FOUR FINGERS WATSON on 04.28.18 at 4:10 pm

No problem, China will impose an empty house tax on the Ghost Cities and it will be full speed ahead.Carry on…

#5 TurnerNation on 04.28.18 at 4:13 pm

Grime pays. Slightly off colour lending for dirty-credit scorers:

Firm Capital MIC yield is 7.75%. FC.TO
Mogo Financial debentures coupon 10%. MOGO.DB.TO

One wonders their average cost of capital versus return on capital.

#6 Arto on 04.28.18 at 4:15 pm

Hey, Ryan, regarding the image of the “ghost city”, was that taken in China or Coal Harbour, Vancouver?

#7 Lost...but not leased on 04.28.18 at 4:17 pm

Go Leafs GOlf !

Phyyrrzzzt !

#8 Market timing on 04.28.18 at 4:18 pm

Doesn’t work Ryan . You know this

Just like 2008, we will find out AFTER the event

#9 Stan Brooks on 04.28.18 at 4:19 pm

Misleading article as always.

Soooooooo Canadian.
China has 160 % of GDP corporate debt.
So what?

China has no government debt. It holds other countries debt.

China’s personal debt is 53.2% of GDP.
Combined China debt is 213 % of DGP

Ignore the ghost cities, they are very small % of that debt.

Most of it/the debt goes to growth, not to consumption as us. China grows at 7-8 % for over 30 years.

They still have to develop they consumer markets, huge opportunity to invest in their consmer ETFs.

Plus their debt is in Yuan/Remninby, NOT IN USD.

———————————

Where do we stand?
270 % private debt – house hold (101 %) + corporate, 90 % government debt.

Far worse almost 60 % worse than China. Plus we have NO GROWTH. just inflation/stagflation.

I will hold China ETF any time but not a Canadian one.

========================

If my pants were brown bottomed as our economy is I would simply shut up.

The bible says:

You hypocrite! First take the beam out of your own eye, and then you will see clearly to remove the speck from your brother’s eye.

If you invest in long run the last thing you would do is read Wallstreet Journal.

The silk road connecting Europe and Asia will be spectacular, invest in it.

#10 MF on 04.28.18 at 4:20 pm

There will be no msm headlines until it is too late. It will therefore be hard to protect our portfolios.

The reason is simple: none of the stats out of the Chinese government are real.

Lol @ anyone who believes them.

MF

#11 crowdedelevatorfartz on 04.28.18 at 4:22 pm

Their costly military build up, one child policy, rapidly aging population, corruption, pollution,……

Yep, “Leader for life” Xi AND his subservient Communist party has its work cut out for it……..

#12 For those about to flop... on 04.28.18 at 4:31 pm

For those interested in the dog in yesterday’s photo,open up this link and click on the first photo.

I found a bigger one.

This size of this dog makes the other one look like a pup…

M43BC

https://www.101dogbreeds.com/caucasian-ovcharka.asp

#13 Stan Brooks on 04.28.18 at 4:37 pm

Ryan, really disappointed.


Second, is a material slowdown in China’s economy. Right now with China’s still high GDP growth they can meet the debt obligations. But was happens if their economy slows materially making it harder to pay off the debt. As the sage Warren Buffet once said, “you only find out who is swimming naked when the tide goes out.”

They inflate, simple as that. How are going to meet our debt obligations as rates rise? Ask Steve P. at BoC.

But I agree, soon we will really see who is swimming naked when the tide hoes out.

Hint: It won’t be US or China or Europe.

And even the blind here will soon see what inflation is.
Even the one eyed see it already.

#14 Stan Brooks on 04.28.18 at 4:41 pm

Oh, I forgot,

Yuan’s interest rate is 4.35 %,
https://tradingeconomics.com/china/interest-rate

Now imagine if our rate was 4.35 % (Steve P gets hard attack at 2 %), not 1.25 % what would happen in this country.

#15 Stan Brooks on 04.28.18 at 4:46 pm

hearth attack

#16 For those about to flop... on 04.28.18 at 5:09 pm

Pink Pollen falling in Coquitlam.

These guys just took 50k off and are down now to their break even number just for sale expenses and a couple of percent each year for opportunity costs ,which means they roughly need at least 9% gain after picking this place up for 1.42 in May 2016.

It’s most recent assessment comes in at only 1.31

Then the second part of the equation ,and this question we will probably never know the answer to as the listing states that the work was done in 2016,was it the previous owners that paid for all of this ,or these guys?

“Reno’d Family Home w/separate double garage off lane camper pad & gates to lane lots of driveway parking. This established POPULAR neighbourhood is close to all schools, transit & shopping. Features: New roof & drainspouts with clean out drains 2017 (30 yr. warranty), front entry door, high efficiency variable speed Lennox furnace (oversize), central air conditioning, custom millwork, closet organizers, 7 zone sprinkler system with moisture sensor, 9000 watt generator, new windows & ext. doors, alarm system, LED lighting throughout. All done in 2016. Electric car charging port in garage more.”

Are they ordering the Surf and Turf for dinner or just a quiche…

M43BC

2251 Lorraine Avenue, Coquitlam paid 1.42 May 2016 ass 1.31

Apr 5:$1,598,000
Apr 26: $1,548,000
Change: – 50000.00 -3%

https://www.zolo.ca/coquitlam-real-estate/2251-lorraine-avenue

https://www.bcassessment.ca/Property/Info/QTAwMDAzWEZLSg==

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#17 Penny Henny on 04.28.18 at 5:20 pm

But much of this growth has been fueled by a dramatic rise in debt, which could make the country vulnerable down the road.-Ryan

///////////////

China is in debt.
USA is in debt.
Canada is in debt.
It seems that every single country is in debt.
Which country is holding all this debt?
Ryan? Shawn Allen?
Mark you need not apply, you nutbar.

#18 mark on 04.28.18 at 5:24 pm

JL Collins makes a lot of sense, a little off topic but for the investing crowd its one of the most common sense blogs and authors i have stumbled on. Very sensible common sense approach to investing IMO.

Hear is some youtube series on some of his thoughts if interested.

https://www.youtube.com/watch?v=SL47uGEpIgM

#19 For those about to flop... on 04.28.18 at 5:25 pm

#146 LP on 04.28.18 at 4:20 pm
#142 For those about to flop… on 04.28.18 at 3:06 pm

I’m afraid I had to take Robin back to her original owners one day after returning home with her from our last camping trip. I depend on a walker (rollator) to get around and my husband was just 4 weeks away from his passing and was too weak to look after her. It was a sad day and I cried all the way home after saying goodbye to her.

But two weeks later the kennel called to say that she had been re-homed to a family with lots of experience with collies so she’s in a good place and I’m at peace about it.

Dogs…what a horrible world this would be without them. And Felix, cats are pretty okay too, in my book!

/////////////////

Hey LP ,sorry to hear about Robin and I have already expressed condolences on the loss of your husband.

I still remember that New Years Eve when we communicated on here after I was housebound after another surgery.

You’ve had a rough go of it lately Linda ,but I hope this blog brings you a bit of joy each day, and I hope occasionally as I continue to make a fool of myself on here daily I bring an occasional smile to your face.

If you ever get lonely,I am only a message away.

Stay strong,love Flop…

M43BC

#20 Reynolds531 on 04.28.18 at 5:26 pm

#9 Stan

The problem investing in China is that there is only one entity. Your counterparty makes the laws. As a foreigner you have little recourse.

They play to win. Period.

#21 FOUR FINGERS WATSON on 04.28.18 at 5:35 pm

They don’t need no stinkin’ ghost cities. They got Vancouver.

#22 Immature Canadian Millenial on 04.28.18 at 5:40 pm

I thought China and India were rising economies?

#23 Conn Smythe on 04.28.18 at 5:47 pm

3115 Toronto Hater

And Toronturds say:

“Hey, but it’s different here, a new rule says the Leafs still get to go the Stanley Cup Finals! Just like our house prices, they always go up! Toronto is special!”

I see you are now making up fake quotes in your diatribe against the GTA. Toronto becoming a rust belt town is about as likely as you becoming sane. The GTA has the world’s biggest greenbelt surrounding it. Supply has been restricted. There are no empty subdivisions filled with ghost homes. Demand is constant and isn’t going anywhere south, anytime soon. This is a combination of local and international demand. Here is what Benjamin Tal, chief economist for the CIBC has to say about the GTA’s real estate prospects. Read and weep you deranged low life Toronto basher.

http://news.buzzbuzzhome.com/2018/03/worst-falling-single-family-home-prices-gta-economist-says-yes.html

#24 TRUMP on 04.28.18 at 5:47 pm

IT’s ALL GOOD….

The world’s infrastructure was built off of debt.

Name me a world superpower economy who hasnt used debt to create its prosperity???

#25 Fake News Again on 04.28.18 at 5:51 pm

Sorry Ryan but China’s debt to GDP is 250% not 160%….but then again this is the same blog that thinks Canada is at “Full Employment”……

#26 For those about to flop... on 04.28.18 at 5:52 pm

Here, I can tell a few people on here today would be interested in this article written last November.

As with all howmuch articles,they are visualizations and so the best thing to do is click on the link and then you get to check out the graphics and have the option of clicking on the embedded links with often include further explanation from their sources…

M43BC

“Visualizing Your Country’s Unsustainable Debt per Person.

National debt levels can be hard to understand, not to mention boring. For example, Puerto Rico is making headlines because it is $74 billion in debt, but the United States is about to reach $20 trillion, and that doesn’t seem like a big deal. How can this make sense, and who cares about all this stuff anyway? We created a new graph to break it down in layman’s terms.

We used new numbers from the Organization for Economic Co-operation and Development (OECD) about per capita national debt. It’s a straightforward metric. For instance, if Americans wanted to completely eliminate their national debt, they would each owe $61,539. We created a series of donut circles: the larger the circle, the higher the per capita debt ratio. We then color-coded each one to correspond with a sliding scale of severity. Dark red means the country is in serious trouble with over $75K in per capita debt, while blue countries on the outside have less than $10K of debt per capita.

Comparing the debt loads of different countries on a per capita basis makes the most sense for a few different reasons. It’s like comparing apples to apples. That’s why the United States can run a $63 billion deficit for the month of October—which barely makes the news on Reuters—but missing $900 million in debt payments from Venezuela causes that country’s entire economy to tailspin. This makes the comparisons between countries fair.

Japan is at the center of our graph because that country has the highest per capita debt anywhere in the world at $90,345. There isn’t a country on earth where average people make nearly that much money on an annual basis. Ireland takes second place at $62,687 followed by the United States in third with $61,539. That’s almost twice as much as the average American taxpayer who files as a single adult makes in an entire year.

Take a look at one country on the far outside of our graph, China. The Chinese government has managed to create so much economic growth (which may finally be slowing down) while only amassing $7,119 in per capita public debt. Granted, China is the most populated country on the planet. That’s still an amazing accomplishment given how much modernization the country has undergone.

Take a look at a list of the top ten countries with the highest per capita debt in the world. Keep in mind that the average for all countries in the OECD is $50,245. And notice how many countries are in Western Europe.

1. Japan – $90,345

2. Ireland – $62,687

3. United States – $61,539

4. Italy – $59,372

5. Belgium – $59,680

6. Austria – $49,975

7. France – $51,768

8. Greece – $49,630

9. United Kingdom – $52,816

10. Portugal – $44,819

Per capita numbers are always a great way to compare different economies from around the world. It doesn’t matter who you are—if every citizen in a country suddenly became liable for paying an equal share of the national debt, there’d by serious problems. And that’s especially true when an individual’s portion of the national debt amounted to more than an entire year’s salary.”

https://howmuch.net/articles/general-government-gross-debt-per-capita

#27 ANON on 04.28.18 at 5:54 pm

Promises of more make people do stuff as long as they have energy to burn. News at 11.

#28 Ryan Lewenza on 04.28.18 at 6:24 pm

Fake News Again “Sorry Ryan but China’s debt to GDP is 250% not 160%….but then again this is the same blog that thinks Canada is at “Full Employment”……”

If you’re going to use insults you should know what you’re talking about. The whole article was on CORPORATE debt. The 250% includes all other debt like household and bank debt. And if you don’t like the opinions expressed on this blog why do you continue to read it? – Ryan L

#29 conan on 04.28.18 at 7:04 pm

Many of the ghost towns in China are populated now. Many early investors lost their shirts though. Migrant workers and farmers ,mostly. The landed gentry pool their money into elaborate off shore investment schemes.

They have a billion plus wallets and purses in China, and a lot, of multi generational money. Think , I Ching, 900 BC. Anyway, lots of money moving around, driving up international real estate.

Where is the next Vancouver? I don’t think it is Halifax.

Wild card guess for valuable land 50 years from now is…………. Where China is building that Panama Canal replacement. It’s beyond cheap now.

#30 NoName on 04.28.18 at 7:11 pm

hey MF

too this one today, yes tor does look nice from my side of the lake, but we all know its much better here. house with swimming pool 450-500k. 5min hike to top of escarpment and you get to se crazys across the lake.

https://imgur.com/a/qMmzjha

#31 crowdedelevatorfartz on 04.28.18 at 7:14 pm

@#2 Floppie
Those maps are interesting.
Florida, Texas and Cali seem to earn the most from the gun industry and will be the worst places to live due to climate change……not a good combo.

#32 crowdedelevatorfartz on 04.28.18 at 7:18 pm

@#26 Floppie

Hey!
You could take you Canadian pesos and flee our 44.5k debt average and move back to Aussie and “pave the way” in the 22.2k debt average.
You’d be a cash king

#33 Lost...but not leased on 04.28.18 at 7:21 pm

#24 Trump

Try post- Weimar Germany…..

It took (2) World Wars for “ALL WARS ARE BANKERS WARS” to take down this central European nation.

Head Office? was Communist Central= NYC.

If you do not :
(i) understand
and/or
(ii)or fail to do the homework.

…one is not only doomed to having history repeated..one is likely in the midst of the aforementioned sequel.

#34 Lost...but not leased on 04.28.18 at 7:53 pm

Guns ???

Witihin the next month…we will be “Invading” (aka legally weaponized with passports in hand)that backwards country SOUTH of the 49 th Parallel.

Our plan is to “inspect” approx. 10 western “States” before returning to mothership “Canuckistan”.

Rough estimate is will be within range of MILLIONS of LEGAL projectile firing paraphenalia … aka “GUNS” y’know..via ” Right- To- Bear- Arms”.(for sake of
argument…Ignore “ILLEGAL” guns for now)

Concern rating?? = b-e-l-o-w ZERO…

#35 MF on 04.28.18 at 7:58 pm

#33 Lost…but not leased

Weimar was after WW1, not before.

MF

#36 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 04.28.18 at 8:04 pm

It’s Saturday Night in Toronto!!!!

wait……ummm…..

Nothing is happening, Leafs fans.

Sad, delusional, fifth rate city, with the worst hockey franchise known to most living beings.

And a real estate market that is the worst bubble ever.

Don and Ron, take the night off.

51 YEARS AND COUNTING!

#37 For those about to flop... on 04.28.18 at 8:04 pm

#32 crowdedelevatorfartz on 04.28.18 at 7:18 pm
@#26 Floppie

Hey!
You could take you Canadian pesos and flee our 44.5k debt average and move back to Aussie and “pave the way” in the 22.2k debt average.
You’d be a cash king

////////////////

Hey Crowdie,yes I did notice that difference between my two countries.

Also the other day I noticed the Canuck bucks had shimmied it’s way back up against the Oz logs and so I sent some money back home to my superannuation fund that I use in tandem with my TFSA to try and have a half decent chance at retirement.

The two combined will not be enough ,but I won’t be the worst one around if you look at everyones debt levels.

I would like to retire somewhere in the Mediterranean but will probably end up in Yellowknife.

Upon arrival I will recite the words of Paul Hogan in Crocodile Dundee.

That’s not a knife, now that’s a knife…

M43BC

#38 Linda on 04.28.18 at 8:18 pm

China at one point had the most people of any nation – I think they still might be #1 but India may have jumped into 1st place by now due to the Chinese ‘one child’ policy. I don’t know if that policy is still being adhered to or not. So I wonder if China’s aging population (with a somewhat skewed male to female ratio due to the cultural preference for male offspring) will be a trigger for a debt crisis? I noted the one commenter had a listing of highest debt to GDP nations & Japan – which has a high percentage of aged population – led the list.

#39 LP on 04.28.18 at 8:30 pm

#3 For those about to flop… on 04.28.18 at 4:10 pm
I see two potential “pricks” that could bring this risk to the surface.-InfLewenza.
/////////////////////

You leave Smoking Man and myself out of this…

********************************************

No smile, just a loud, long belly laugh. Good one Flop!

I’m keeping pretty busy to fill up the time. Today, all day, I packed, unpacked, packed, unpacked trying to get too much stuff in just a very few suitcases. I should have bought a smaller car so that I couldn’t take too many clothes on what is, afterall, only a 2-week holiday.
Tomorrow, dark and early, I depart on a road trip to PEI to see my youngest brother.

I’ve loaded the car with Gordon Lightfoot, Yo Yo Mah, Willie Nelson and gospel music CDs, car is washed and waxed (so, of course, the forecast is for rain tomorrow) and the tank is full of suddenly awfully expensive gas. It’s going to be a blast. Sure hope I like my own company!!!

F70+ON

#40 NoName on 04.28.18 at 8:58 pm

interesting chart, art vs snp500

art as an investment

https://1uyxqn3lzdsa2ytyzj1asxmmmpt-wpengine.netdna-ssl.com/wp-content/uploads/2016/01/Art-Market-Chart.jpg

#41 NoName on 04.28.18 at 9:04 pm

using art and freeports to avoid/defer sales tax tax-es…

#42 Stan Brooks on 04.28.18 at 9:09 pm

#23 Conn Smythe on 04.28.18 at 5:47 pm
3115 Toronto Hater

And Toronturds say:

“Hey, but it’s different here, a new rule says the Leafs still get to go the Stanley Cup Finals! Just like our house prices, they always go up! Toronto is special!”

I see you are now making up fake quotes in your diatribe against the GTA. Toronto becoming a rust belt town is about as likely as you becoming sane. The GTA has the world’s biggest greenbelt surrounding it. Supply has been restricted. There are no empty subdivisions filled with ghost homes. Demand is constant and isn’t going anywhere south, anytime soon. This is a combination of local and international demand. Here is what Benjamin Tal, chief economist for the CIBC has to say about the GTA’s real estate prospects. Read and weep you deranged low life Toronto basher.

http://news.buzzbuzzhome.com/2018/03/worst-falling-single-family-home-prices-gta-economist-says-yes.html

==============================

1. GTA supply restricted?

You can increase density 5 times by building European type apartment buildings instead of SFH, maybe 10 times.

2. Ben Tal is snake oil salesmen, his job is related to pumping real estate. Since when is CIBC authority on housing?

3. What does GTA really mean? Only delusional person would say that Scarborough, Vaughan, Markham are fairly priced.

4. International demand? Here I died laughing.
For what: undersized condos with huge maintenance, quality of life, weather?

Toronto was finished/rust bell city 15 years ago that only ‘thrived’ lately due to the insane credit orgy Canadians are indulged in.

#43 Fake News Again on 04.28.18 at 9:15 pm

Ryan Lewenza on 04.28.18 at 6:24 pm
Fake News Again “Sorry Ryan but China’s debt to GDP is 250% not 160%….but then again this is the same blog that thinks Canada is at “Full Employment”……”

If you’re going to use insults you should know what you’re talking about. The whole article was on CORPORATE debt. The 250% includes all other debt like household and bank debt. And if you don’t like the opinions expressed on this blog why do you continue to read it? – Ryan L

_____

Thank you for the correction Ryan I apologize for the GDP error.

But I fail to see the “insult” bit. Canada is NO WHERE NEAR full employment if you include the govt workers at 30% that do not contribute to GDP, welfare, disabled people (of which our socialist society is FULL of) and those not counted but are unemployed. Those 4 points account for more than 50% of the eligible workforce….not working. If Canada’s private industry did not give “Govt” billions of dollars of Oil and Rock royalties…..we would be a 3rd world country.

#44 Long-Time Lurker on 04.28.18 at 9:31 pm

Today’s haiku poem:

Emperor Xi
Chinese Democracy
Axl too slow

#45 For those about to flop... on 04.28.18 at 9:49 pm

This one they sliced the numbers a different way.

C’mon Canada ,don’t let Belgium beat you like that.

Stephen Poloz is secretly Belgian.

He likes to waffle…

M43BC

“This Graphic Unveils the Truth Behind America’s Record-Breaking Debt of $20 Trillion.

The U.S. federal government just passed a record $20 trillion in publicly held debt. That’s bigger than the entire economy of every country in the European Union, combined. The debt will only grow higher unless President Trump and the U.S. Congress can agree to unprecedented spending cuts combined with tax increases. Don’t count on that happening anytime soon. Most people think that an eye-popping $20+ trillion debt is insurmountable, and in fact, it is the largest in the world by far. But when you look at another fiscal measure—the ratio of debt-to-GDP—the U.S. is not in the worst situation.

Our visualization allows you to quickly see how the U.S. government’s debt compares to other countries around the world. The size of the country correlates to the size of the debt. The U.S. and Japan stand out because they have the highest debts in the world ($20.17T and $11.59T, respectively). Other countries, like Germany and Brazil, appear much smaller because their debts are comparatively tiny ($2.45T and $1.45T, respectively). We then color-coded each country according to its debt-to-GDP ratio. Green countries have a healthy margin, but dark red and fuchsia countries have debts that are even bigger than their entire economies.

The debt-to-GDP ratio is a critical metric for evaluating a country’s fiscal health. It makes a lot of sense for the American government to have a higher debt than a much smaller country, like Germany. Think about it like this: Bill Gates is worth $86 billion, so he can afford a much higher credit card bill than me or you. That’s why it’s important to consider the Gross Domestic Product (GDP) of each country, a number which represents the sum of all transactions occurring in the economy. Once you understand the public debt as a percentage of GDP, you get a level playing field for countries on different economic scales. When you think about it like this, the U.S. isn’t even among the ten worst sovereign debts in the world.

Top 10 countries with the Worst Debt-to-GDP Ratios
1. Japan (245% at $11.59B)

2. Greece (173% at $338B)

3. Italy (138% at $138B

4. Portugal (133% at $274B

5. Belgium (111% at $111B)

6. Spain (106% at $106B)

7. Canada (106% at $106B)

8. Ireland (105% at $105B)

9. France (98% at $98B)

10. Brazil (82% at $82B)

There’s another reason why $20+ trillion in debt isn’t that big of a deal. The U.S. has a huge debt load both in real terms and as a percentage of GDP, but people around the world don’t hesitate to loan it money at extremely low interest rates. That’s because it’s still seen as an incredibly safe investment.

Monetary policy and sovereign debt are complex topics. You can get an advanced degree in this stuff, and not quite understand it. We aren’t saying $20+ trillion in debt is a good thing, but all in all, the U.S. is still in pretty good shape, especially compared to other developed economies around the world.”

#46 Fake News Again on 04.28.18 at 10:26 pm

NK just announced they would STOP testing nukes and close its nuke site next month….

Another win for President Trump…..the left/never Trumpers must be melting like ice cream. Maybe someone can give them some hot chocolate, a safe space to cry in and some playdough……..

#47 TRUMP on 04.28.18 at 10:29 pm

#33 Lost…… but not released.

Give your head a shake.

The Rothchilds financed both sides of the war if u want to get that technical.

75% of all the world economies tax bill goes to pay for the interest from the Rothchilds war.

Suck it up and pay up off your paycheck sucka!!

Your elected government officials are actually puppets for the rich. Sorry to tell u.

#48 MF on 04.28.18 at 10:57 pm

#43 Fake News Again on 04.28.18 at 9:15 pm

Hey Somalia has zero government workers. By your logic their GDP should be huge right?

MF

#49 Honey Dripper on 04.28.18 at 11:31 pm

I will continue holding an EM ETF as long as Canada remains just 4% of the world market. Not a crazy amount in EM just a little, like a shot of single malt.

#50 Rusty on 04.28.18 at 11:59 pm

I recently visited to a Home Depot in Niagara Falls NY,
now that’s rust belt!
It makes St Catharines look like Los Angeles.
No one is ‘making America great again’

#51 Smoking Man on 04.29.18 at 12:15 am

Every druck should make the pildramidge to lost vegas. A place were you fit in..

Loving life and all you beasts out there. Hate me I don’t care at this moment in time.

We are all going to die. Your agrugment based on your programming will be meaningless when you are a snack for worms.

Pease out. I love you all. God told me to say that.

I wanted to say something else.

#52 Smoking Man on 04.29.18 at 12:54 am

Gartho DM don’t get it. How in the fk did he get the controls? George I’m thinking. Dracula times 10.

#53 Buy? Curious? on 04.29.18 at 4:15 am

Hey Ryan!

I know you have have the tough job of trying fill Garth’s size 7 cowboy boots (gawd! I wish there was a fashion police I could report him to. Cowboy boots? At his age? *rolls eyes*) but honestly, no one gives a rodent’s behind (I’m acknowledging the blog language rules *double eyes roll*). Who cares about China? Honestly, who cares? What we all care about and what we all worry about is how will this affect Baby Boomers! (“I’m old! I’ve worked hard all my life. Gimme, gimme, GIMME!”) China? Come on. How many people here understand the utter complexity of China’s power, economically, militarily, socially? I remember a few weeks ago at the Oshawa Centre, some geezer, tried to talk to me while I was sitting, waiting for my mum to do her walking laps, asks me what I thought about Trump trying impose a steel tariff on China. “Eh, uh, whatcha yoos thinks about Trump and the Chinese steel tax ther’ eh? There’s going to be trouble in Hamilton, eh.” Dude, stop watching Fox and Friends! You will never, ever notice what China does from where we are. Garth says it all the time. “Chinese are laundering their money through Canadian real estate!” Garth’s response? Nope. “All Markham is being bought up by the Chinese!” Garth’s response? Nope. So for you to try to explain China to us is an absolute waste of time. Your next post should be about the panic Boomers are facing when they see the price of their retirement strategy (house) fall while they face health issues. THAT’S the post you write on if you ever leave your ivory tower.

#54 Conn Smythe on 04.29.18 at 7:38 am

To Stan the Man Brooks and Toronto Basher:

Greetings dynamic duo (or are you the same person??)

Toronto Basher, take your bashing of Canada’s biggest city elsewhere. As Canadian, not only as a GTA resident, I find your diatribes against fellow Canadians repugnant. As the late, great Stompin Tom said, “if you don’t love this country, get the hell out.” We don’t need the likes of you.

1. GTA supply restricted?

You can increase density 5 times by building European type apartment buildings instead of SFH, maybe 10 times.

And that is what is being done Stan baby. Every parking lot in the downtown core is becoming a condo. Condo capital of North America buddy. Condos springing up all over, not only the downtown core.

2. Ben Tal is snake oil salesmen, his job is related to pumping real estate. Since when is CIBC authority on housing?

Economics 101. Put a 7500 sq km greenbelt around a city and see what happens. Supply has been restricted, hence why condos are and will continue to spring up everywhere in the GTA. Tal understands basic economics, something you have shown that you are woefully ignorant of.

3. What does GTA really mean? Only delusional person would say that Scarborough, Vaughan, Markham are fairly priced.

What is your definition of fairly priced? Demand ansd lack of supply will dictate the price. The demand is high and not everyone wants to commute 2 hours plus a day to get to work in the GTA. Bubbles end when there is no demand and the supply has exploded as in the American housing crisis where empty subdivisions sat with no buyers to be had.

4. International demand? Here I died laughing.
For what: undersized condos with huge maintenance, quality of life, weather?

Now your really crack me up Stan baby. I have an international school with students coming from over 20 nations and growing. Why are they choosing to come to the GTA? Ever been in apartments in some European cities or Asia? You are a joke cowboy along with your anti Toronto blather.

Toronto was finished/rust bell city 15 years ago that only ‘thrived’ lately due to the insane credit orgy Canadians are indulged in.

This comment is so insane that I really think you and Toronto basher are one and the same delusional person. Go to a real rust belt city like Detroit and then come back to Toronto and kiss the ground. I have and did.

You and Toronto Basher need to pack your bags and leave this great country. Any Canadian that spews vitriol about another part of Canadian is no Canadian.

#55 busted on 04.29.18 at 8:09 am

#24 Canada…. before letting the private bank make money for us, we built the saint Laurance seaway, railroad etc using the bank of Canada… that’s how we got rich.. now and since 1976, we use the private banks to create money…and pay compounded interest forever..
I spent time in China in 2012, when China first allowed their citizen to buy gold and silver… there was a line up to the gold stores and still is, they have been converting their paper to metals at 30% saving, they save far more than we do…
the empty cities are paper being converted to real things
the facts is China has 400 million in the middle class and has another 800 million wanting to go there. They commission one coal-fired power plant PER WEEK.
They plan and think long term , they hold more other countries debts, so if all goes down, they have 1200 million people to rebuild and start a new, and most work for peanuts and know how to survive on nothing, we cannot live without our daily POUTINES hahaha.

#56 busted on 04.29.18 at 8:25 am

Oops 1974 when Canada gave away the right to make money, Trudeau was in power,
https://www.youtube.com/watch?v=JuP2hH0Kpro

#57 busted on 04.29.18 at 8:34 am

We might not like to use gold and silver as money but who cares when your China 1200 million people and they allow the use of gold and silver to trade with India and Russia and the BRICS nations, over 3 billion souls, if they decided that they will allow a brick of gold to change hands for a boat load of oil, who cares if the west doesn’t see the value… they will trade amongst themselves.. we are all about debts… sooner or late that debt has to be paid.
Look at Russia, all the sanction that where imposed on them dropped their dollar by 50 %, but the Russians that held gold in trust LOST NOTHING…
Canada lives on borrowed money and we are not as rich as we think we are… soon many will realize the lie. real estate doesn’t always goes up..

#58 busted on 04.29.18 at 8:40 am

Is it not time to buy Canada Juniors…. biggest undeveloped lithium in Ontario for 50 cents/share.

biggest undeveloped potash deposit in the world for 40 cents/shares.

Huge undeveloped Graphite deposit 20 cent/share
that would be a good thing for the TFSA…
some take a risk money, 10 % of my account. future looks good.
Huge oil producer about to rock Asia, $1/share

#59 maxx on 04.29.18 at 8:44 am

#91 Buy? Curious? on 04.28.18 at 2:57 am

“Hey Garth!………….

What am I do to prepare for my financial future, you ask while scratching your head? Nothing! How is that possible? One word: inheritance! The Boomers (parents) have greedily amassed asserts that have grown over 570% and they take it with them, so who’s next in line to cash in? Generation X! Or in my case, Generation $$$! Haha, Suckers! Millennials, the only way you can compete is to not play the game. Don’t take on any debt, in any form.”

Not so fast junior….many obnoxious Millennials are in for a shock. Their attitudes ensure that charity stands to gain a huge amount, and in many cases 100% of that boomer wealth.

Charitable organizations are worthy causes. Snot-nosed and arrogant ignoramuses, not so much. The last thing I want to see is hard-earned wealth squandered on a grossly mutated sense of entitlement.

#60 Fish on 04.29.18 at 8:56 am

RE#52 Smoking Man on 04.29.18 at 12:54 am
Gartho DM don’t get it. How in the fk did he get the controls? George I’m thinking. Dracula times 10.

****************
I’m thinking 10 Gary, Witch was Dracula at one time, I,was at one time Dracula’s wife, now I’m the X

#61 dharma bum on 04.29.18 at 9:01 am

#53 Buy? Curious?

I remember a few weeks ago at the Oshawa Centre, some geezer, tried to talk to me while I was sitting, waiting for my mum to do her walking laps, asks me what I thought about Trump trying impose a steel tariff on China.
——————————————————————-

Ha ha ha! OSHAWA! Now THAT’s funny!!!

Talk about rust belt.

Talk about lunch bucket hick town.

“Oh hey, how’s it goin’. eh? So, whatchya tink a dat Trump guy, eh?”

Too funny.

#62 jess on 04.29.18 at 9:12 am

as the french president warned…”there is no planet B”

“pinch /pull”

https://www.intergencommission.org/

the Resolution Foundation’s intergenerational commission publishes its groundbreaking two-year investigation into millennial Britain on 8 May. The commission rightly says that intergenerational fairness is a major issue, but so too are the troubling inequalities within the generations..

The escalator that for decades ensured the younger generation had a better standard of living than their parents has stalled – and that has ramifications for life. Britain – along with Greece – is now the most pessimistic among the advanced economic countries, a mood that has potentially catastrophic implications for a country’s wellbeing and resilience.

https://www.theguardian.com/society/2018/apr/29/millennials-struggling-is-it-fault-of-baby-boomers-intergenerational-fairness

#63 Wrk.dover on 04.29.18 at 9:20 am

Doc Zone story, repeat from 2013 about Toronto condos on CBC tonight at 2:00 am.

#64 Ian on 04.29.18 at 9:40 am

China’s corporate debt is just one of their many problems.

They also have a shadow banking sector that is out of control, and are holding 1t of US debt that is declining in value AND declining even worse in USD terms.

Major problems coming for China. Once they blow out all their foreign reserves they have built up it’s game over.

#65 NoName on 04.29.18 at 9:52 am

this could be our deal, just imagine if it went true, it would be more free stuff…

Qatar Petroleum signs 15-year deal to supply LPG, naphtha to Vietnam
https://af.reuters.com/article/commoditiesNews/idAFD5N1PO00E

#66 Ryan Lewenza on 04.29.18 at 10:06 am

Buy? Curious? “Who cares about China? Honestly, who cares? What we all care about and what we all worry about is how will this affect Baby Boomers! (“I’m old! I’ve worked hard all my life. Gimme, gimme, GIMME!”) China? Come on.”

China’s debt problem has the potential to impact baby boomers directly through the impact on the global economy, direction of interest rates and the stock market. I see this as one of the biggest long-term risks to the global economy and stock market which impacts everyone. As such I thought it was an important topic to discuss and bring to everyone’s attention. – Ryan L

#67 Ryan Lewenza on 04.29.18 at 10:12 am

Busted “Is it not time to buy Canada Juniors…. biggest undeveloped lithium in Ontario for 50 cents/share.”

Too much risk for us in buying Junior Canadian stocks but we do believe the TSX is looking more attractive these days given lagged performance, cheaper valuations, solid earnings outlook and improving commodities. – Ryan L

#68 crowdedelevatorfartz on 04.29.18 at 10:15 am

@#39 LP
“Gospel music CDs, ………”
+++++

No LP’s?
Blasphemy.

#69 NoName on 04.29.18 at 11:05 am

hard coded trojan or something like that…

https://www.wired.com/2016/06/demonically-clever-backdoor-hides-inside-computer-chip/

#70 BobC on 04.29.18 at 11:05 am

The states, Clinton and the democrats donated 55,000 factories and over 400,000 middle class jobs to China to help them out. Many globalist May think it wasn’t enough but thank God we got Trump to slow it down.

#71 Stan Brooks on 04.29.18 at 11:09 am

#54 Conn Smythe on 04.29.18 at 7:38 am

How about you leaving?

There will be one idiot less to feed with our taxes.

#72 Doug in London on 04.29.18 at 11:12 am

Look on the bright side. If the Chinese stock markets takes a hit sometime in the future, it will be a good time to scoop up FXI-NY on the cheap.

#73 Mr Rothschild on 04.29.18 at 11:14 am

Mr. Turner, we have warned you before. Make sure your people aren’t talking about us.

A fresh box of tinfoil hats, and the weekly payment of $2 million CAD have been couriered to your ice cream shell corporation.

#74 BobC on 04.29.18 at 11:42 am

#50 Rusty
It took 40-50 years to get us in this shape. Your putting down Trump for not fixing everything in a year?

#75 LivinLarge on 04.29.18 at 12:01 pm

“And if you don’t like the opinions expressed on this blog why do you continue to read it?”…rhetorical question, right?

Because they’re angry ol’ gits with limited computer access at the “home” and just like to bitch and whine so they can feel good about themselves by seeing “THEIR” words on the same page as some actual professionals. Beats the rice pudding at lunch and dinner.

#76 Rexx Rock on 04.29.18 at 12:20 pm

You want a great city to live?Kuala Lumpur,This city is Awesome.Affordable living,weather,infrastucture,low crime,clean,cheap travel to all Asia.The people are friendly.Sure booze is expensive but not much more then here.I can buy a beer in 7 eleven, walk outside and drink it and not get fined $200 like good old Canada.

#77 Fake News Again on 04.29.18 at 12:41 pm

MF on 04.28.18 at 10:57 pm
#43 Fake News Again on 04.28.18 at 9:15 pm

Hey Somalia has zero government workers. By your logic their GDP should be huge right?

MF

____

I don’t know. Are they taxed to death for sub-standard services? Do they have 100 trillion dollars of rocks and oil that come out of the ground whose royalty is distributed to services that benefit the people by a FAT LAZY INEFFICIENT bureaucracy? What a “dum” comparison of a warlord country like Somalia…..

#78 Big Kahuna on 04.29.18 at 12:42 pm

DELETED

#79 dosouth on 04.29.18 at 12:48 pm

The best you or any expert has to offer is at best a guess on China’s “real economy”. You cannot predict the direction of a corrupt environment that has little to no reporting or repercussions from the World Bank and such ilk….just guesses.

#80 Conn Smythe on 04.29.18 at 1:40 pm

#71 Stan Brooks

“How about you leaving?.
There will be one idiot less to feed with our taxes.”

You are the Canadian basher not me Stan baby. I have not and never will put down any part of this great land. I am not fed with taxes buddy, I make a very good living in the private sector and pay more taxes than the average Canadian earns in a year.

#81 Fake News Again on 04.29.18 at 2:00 pm

LivinLarge on 04.29.18 at 12:01 pm
“And if you don’t like the opinions expressed on this blog why do you continue to read it?”…rhetorical question, right?

Because they’re angry ol’ gits with limited computer access at the “home” and just like to bitch and whine so they can feel good about themselves by seeing “THEIR” words on the same page as some actual professionals. Beats the rice pudding at lunch and dinner.

_______

Or maybe we are in our 40s and are sick and tired of seeing Canada run into the ground by a fat lazy inefficient bureaucracy. And maybe we would like to see a better life for our children who do not have to pay a million dollars for a corn flakes box built by temporary workers that sneaked into Canada through some BS program.

What govt agency did you say your entitled golden ass worked for again?

#82 TurnerNation on 04.29.18 at 2:05 pm

Most accurate headline this week:

“Trudeau and Scheer debate free speech and summer jobs – and get nowhere”

Of course they did so…it’s two sides of the same coin, a false dichotomy.
Fact is we are slaves of the bankers – in so much personal and State debt to be fatal – all the while being hit by taxes on nothing, which go nowhere:

Carbon, user fees on govt services (tax on tax dollars at work), tolls and so on.

In 5 years time the homeless, Natives, Veterans will still be ignored. Hospital lines will strain; the
De-insdustrialization plan will continue unabated.

Interest rates will be higher, more Mom and Pop stores will close over taxes. Global corporations will strengthen their outpost here.
All same sameness.

Stick a fork in it: Kanada

#83 Stan Brooks on 04.29.18 at 3:12 pm

#80 Conn Smythe on 04.29.18 at 1:40 pm
#71 Stan Brooks

“How about you leaving?.
There will be one idiot less to feed with our taxes.”

You are the Canadian basher not me Stan baby. I have not and never will put down any part of this great land. I am not fed with taxes buddy, I make a very good living in the private sector and pay more taxes than the average Canadian earns in a year.

===================

Let’s be clear here:

I am bashing CANADIAN IDIOTS, not Canada,
you interpret it in a different way as you are stupid.

I know and appreciate the normal, independent and critically thinking Canadians who are fed up with the way this country is going.

There is no way you are making money in the Canadian private sector:

1. There is no way to make money there
2. You are stupid enough not to realize point 1 above

unless you are in real estate, which is the Mafia, not the private sector.

Back to ya.

#84 Balmuto on 04.29.18 at 3:18 pm

“#58 busted on 04.29.18 at 8:40 am
Is it not time to buy Canada Juniors…. biggest undeveloped lithium in Ontario for 50 cents/share.

biggest undeveloped potash deposit in the world for 40 cents/shares.

Huge undeveloped Graphite deposit 20 cent/share
that would be a good thing for the TFSA…
some take a risk money, 10 % of my account. future looks good.
Huge oil producer about to rock Asia, $1/share”

Can you provide us with the tickers? Thanks.

#85 Lost...but not leased on 04.29.18 at 3:24 pm

DELETED

#86 CODY on 04.29.18 at 3:25 pm

http://www.sohu.com/a/133489588_141721
5 largest ghost cities’ occupancy rate has gone up to 90%
The Youtube video you posted was shot during Chinese New year during which time most workers go back home in rural area. Even Shanghai looks like a ghost city during that week.

#87 Shawn Allen on 04.29.18 at 3:43 pm

No, WE are not ALL in debt

Penny Henny on 04.28.18 at 5:20 pm said:

“But much of this growth has been fueled by a dramatic rise in debt, which could make the country vulnerable down the road.-Ryan”

///////////////

China is in debt.
USA is in debt.
Canada is in debt.
It seems that every single country is in debt.
Which country is holding all this debt?
Ryan? Shawn Allen?
Mark you need not apply, you nutbar.

***************************************
Right, as you allude here the debt must be held by someone.

I suppose almost all countries are in debt. Some of that debt is held by other countries central banks.

But I imagine much of it is held by institutional investors including banks in various countries and pension funds and debt mutual funds.

The notion that “we” Canadians or “the” Chinese are in debt is not really right.

Certainly the corporate debt in China or Canada is not owed collectively by their citizens. It is owed, indirectly, by the owners of the corporations.

A small percentage of the people in Canada and most countries rather than being net borrowers are massive net lenders to corporations and governments.

There may be too much debt and it may cause problems. But the mere fact that debt increases over time is not necessarily a problem.

Debt does tend to increase as the economy grows. That is not necessarily a bad thing.

Responsible humans need to pay off their debts before they die. Governments and successful corporations however can live forever (on their own or as part of a larger entity if they merge) and therefore generally have no need to EVER pay their debts down to zero.

Berkshire Hathaway has one of the best corporate credit ratings in the world and Buffett says it has “Gibraltor-like” financial strength. Yet its debt grows annually and there is certainly no intention to ever reduce its debt to anything close to zero, ever.

I’m pretty sure that some people have been predicting doom as regards the debt of the United States government for at least the last 200 years. So far, so good, in fact, so great.

#88 Stan Brooks on 04.29.18 at 3:46 pm

#82 TurnerNation on 04.29.18 at 2:05 pm

Pretty much.

The quality of life and the life span of a chicken in a chicken/slave farm depends on the short term goals of the owners.

We are sold the ‘free range’ chicken lifestyle which of course is a lie while we are buckled in limited space up to the eyeballs in chicken shit so congested, that we are even unable to look around.

T2 and Scheer are just low paid cleaning/slaughterhouse workers.

#89 MaxBerniersShorts on 04.29.18 at 4:19 pm

#55 Busted-Commissioning one coal fired plant a week is the antithesis of long term thinking!

#90 Tony on 04.29.18 at 4:22 pm

Re: #10 MF on 04.28.18 at 4:20 pm

All fabricated data out of China and America since 2008 is in the same boat all fabricated data… sad. You can’t run economies on total lies.

#91 jess on 04.29.18 at 4:38 pm

Government announces crackdown on century-old loophole being used to launder money through UK

Ministers plan changes to Scottish Limited Partnerships after finding foreign criminals are exploiting them to spend dirty money in Britain

Benjamin Kentish Political Correspondent

Under plans designed to ensure SLPs are being used only by legitimate businesses, users will have to prove they have a genuine connection to the UK and are running a company or maintaining an address in Scotland. Under the current rules, anyone in the world is able to register an SLP.

The changes being put to consultation by the Department for Business, Energy, and Industrial Strategy will also mean anyone setting up a limited partnership will have to pass anti-money laundering checks.

While many SLPs are owned by legitimate businesses, government research suggests others have been part of complex attempts to launder the proceeds of criminal activities.

One scheme is reported to have used 100 different SLPs to move $80bn out of Russia, while other partnerships were found to have been exploited by international criminal networks based in Eastern Europe and used in arms deals.”

#92 Conn Smythe on 04.29.18 at 9:19 pm

#83 Stan the Man Brooks

I am bashing CANADIAN IDIOTS, not Canada,
you interpret it in a different way as you are stupid.

Bashing an entire region is bashing Canadians. Making stereotypical comments about an entire city is bashing Canadians. Stan baby you are the stupid and ignorant one. Displaying zero knowledge of economics as you blather away like the village idiot.

I know and appreciate the normal, independent and critically thinking Canadians who are fed up with the way this country is going.

I have more critical thinking than you will ever possess Stan baby. You wouldn’t know critical thinking if it hit your thick skull cowboy.

There is no way you are making money in the Canadian private sector:

You are truly insane buddy. Truly, utterly nuts. I am the co-owner of a large private international high school in the GTA you moron. We have students from 20 nations you pint brained loser. 500 plus students and growing in leaps and bounds. Any time you want to debate me in front of 500 students I will make you look like the clown that your are you mindless moron. I am serious. Any time cowboy, any time. The students will howl as I expose you for the mindless half-wit that you are.

1. There is no way to make money there
2. You are stupid enough not to realize point 1 above

unless you are in real estate, which is the Mafia, not the private sector.

Back to ya.

Back at you Stan baby. Take me up on my challenge you mindless moron. We’ll contact each other through the bearded mystic sage that runs this blog. This should be a total gas!

#93 B Wilds on 04.30.18 at 7:17 am

The future of China is intricately interwoven with its far-reaching and encompassing One Belt One Road (OBOR) initiative. The IMF has warned China of the risk having to do with increasing China’s debt by agreeing to loans which could prove economically explosive. More on this subject in the article below.

http://brucewilds.blogspot.com/2018/04/china-warned-of-risk-from-loaning-to.html

#94 garth fan on 04.30.18 at 7:58 am

This documentary about China looks like a corollary to your post:

https://www.forbes.com/sites/markhughes/2018/03/30/review-the-china-hustle/#1628e9ae3357

https://www.youtube.com/watch?v=55892jT06aI

#95 Brett in Calgary on 04.30.18 at 11:24 am

Ryan, I liked the article, but it seems many didn’t. Oh well frank them.

“China’s debt problem has the potential to impact baby boomers directly through the impact on the global economy, direction of interest rates and the stock market. I see this as one of the biggest long-term risks to the global economy and stock market which impacts everyone. As such I thought it was an important topic to discuss and bring to everyone’s attention. – Ryan L”