There are many analysts who believe the next world-wide economic disaster will begin in China. Even the BIS is also rightly concerned about spillover from China to the global economy. China is the second largest economy on the planet with a Gross Domestic Product (GDP) of $10 trillion. That compares to the United States’ GDP of $18.5 trillion.
China, however, is much deeper in debt. We are approximately $20 trillion in debt as compared to China’s approximate $28 trillion of debt. In order to keep their economy growing, China has built 71 one million person cities in the last six years that have no people living in them. Other projects abound are almost always over budget. According to a recent academic study; “unless China scales back it is “headed for an infrastructure-led national financial and economic crisis” with global ramifications. The transparency of their problem is non-existent. It has now been uncovered that they could have as much as $2 trillion dollars of bad debt. This is one-fifth of their economy. Remember in 2007, 87 billion of credit default swaps almost brought down the worlds’ economy? This is 25 times larger of a problem.
We live as part of a world economy. What happens in China, Europe and Japan will have tremendous impact on the economy of the United States.
Here are a few questions to consider:
1) How would a debt crisis affect your personally?
2) What can you do to protect yourself from the next market downturn?
3) How can using the Infinite Banking Concept help me in this situation?
4) Is it possible to not only survive but also profit from a Chinese credit crisis?