Pyrpolizer wrote:Paphitis wrote:
Really DT? We have seen how you like changing the posts.
And how much of Australia's External Debt is foreign owned? I don't have stats but I bet it is a small proportion because most of it is corporate and private household debt. I say that because we have 4 Banks in Australia which are among some of the largest institutions in the world. 2 are fortune 500 companies.
So let's get this straight. The 11% of Australian Farms owned by foreign interests contributes to our debt (I still don't know how) but all the factories we have in China does not contribute to any debt.
Here is an article that estimates China's external debt as 25.5 Trillion USD
I am afraid we got lost in the translation of definitions in this topic.
How can you call that 25 trillion "external Debt" when the article itself refers to internal borrowing?? Here's what the article says:
Many of the companies in question are state-owned firms that borrowed heavily from government-backed banks and so problems with the sector could ultimately trigger "systemic risks" in the economy, he said.
https://www.theguardian.com/business/20 ... ent-expert
How much of that is owned by international investors. Oh wait, international investment doesn't count in this case right? Despite US Treasury Bills and Australian bonds being the least risky because of the AAA ratings.
External Debt is only one aspect because we are not just talking about External debt here but total debts + external debts.
The 1.5 Trillion you referred to from the Australian Government Website specifically stated that this was Government Debt, Council and Local Government Debt, Corporate Debt and Household Debt which can also be broken down to local and external. In other words, the Australian Treasury was measuring total debt levels in Australia to gauge the health of the Australian Economy and Credit Levels. The Reserve Bank also does it to gauge stress levels and when they see that debt is too high, the raise interest rates to curb spending and and reign it in. Right now, the official cash rate is 1.5%, so they are encouraging more activity, and more borrowing.
If this is YOUR Metric, then the Guardian Article is correct too. Chinese Debt levels are about 25 Trillion.
