Our Changing Globe

Archive for the ‘GDP’ Category

Moody's Review China's Credit Rating, Overseas Investment …

www.proactiveinvestors.co.uk11/8/11

HIGHLIGHTS FROM CHINA About ARC China ARC China is a Shanghai-based investment manager focused on investments in consumption-driven, entrepreneur-owned small and medium sized enterprises in China's Tier II and Tier III …

China cuts bank reserve ratio by 50 bps | Bramesh's Technical …

www.brameshtechanalysis.com11/30/11

In a major rating action review of as many as 37 banks globally, S&P has incidentally upgraded two Chinese banks – Bank of China and China Construction Bank. A credit rating is generally considered as a tool to measure an …

A PDF of The Ratings Of Various Countries By The Credit Agencies Is Available For Download

Government officials in China are berating the U.S. because of the Standard & Poor’s downgrade to AA+ and Guan Jianzhong, chairman of Dagong Global Credit Rating, says the U.S. dollar is,

"Gradually being discarded by the world", adding that the “process will be irreversible".

China’s Credit Rating

Fitch gives China an A+ which is their fourth highest rating.

Moody’s gives China an Aa3 which is there third highest ranking.

S&P lists China’s debt rating as AA-, which is the fourth highest level, due to its “sizable” contingent liabilities in its banking system.

Debt to GDP

China’s debt-to-GDP ratio is not only worse than the United State’s ratio, it’s probably worse than Portugal’s, and Portugal is close to bankruptcy.

Despite Moody’s Investors Service saying last month that China’s local debt was understated by hundreds of billions of dollars, the People’s Daily said S&P’s downgrade of the U.S.’s credit rating,

"Sounded the alarm bell for the dollar-denominated global monetary system".

Some Points To Ponder

China has come to own an estimated $1.16 trillion in U.S. debt, by printing excessive Yuans which holds down the currency’s value, making its exports dirt cheap, and it then it uses that extra printed currency to buy U.S. debt.

China likes to say its debt-to-GDP ratio is 17% but the respected Beijing-based research firm Dragonomics says it’s in fact 89% of GDP, which if true would make it worse than Portugal’s which is 83% of GDP.

Stephen Green, who is China economist at Standard Chartered Bank, reckons China’s total debt, including contingent liabilities, is 77% of GDP.

Moody’s said last month that China’s local government debt is understated and might be 3.5 trillion yuan ($540 billion), bigger than its state auditor has estimated,

China’s central bank alone holds an estimated $1.16 trillion in debt, and the government has already increased credit in the system to a reported 200% of GDP.

The eurozone’s problems have kept the euro on a very questionable footing, with the European Central Bank keeping it strong by raising interest rates.

Japan’s massive debts, which are the largest in the world, have kept the yen on an unsound footing.

Strong U.S. defense of Japan, South Korea, Saudi Arabia, Kuwait, Qatar and the United Arab Emirates make it in their interests to protect the dollar.

Paul Ryan Obama | Paul Ryan Occupy Wall Street | Video | Mediaite

www.mediaite.com10/9/11

On Meet the Press earlier today, Congressman Paul Ryan defended the legitimate rights of the Occupy Wall Street protestors to air their grievances about the government, but criticized President Obama for dividing the country …

Paul Ryan pushing Politifact's claim that Paul Ryan isn't trying to end …

hotspyer.com12/8/11

That echoes a previous false claim by Ryan that “The president has not put forward a plan that saves Medicare from bankruptcy, even though nonpartisan experts tell us that this could happen in 9-13 short years unless we act. …

This is Part 10 of a look at possible GOP candidates that might run well against Obama in 2012.

Part 1 looked at Mitch Daniels Part 2 looked at Tim Pawlenty

Part 3 looked at Chris Christie Part 4 looked at Mitt Ronney

Part 5 looked at Sarah Palin Part 6 looked at Mike Huckabee

Part 7 looked at Rudy Giuliani Part 8 looked at Michele Bachman

Part 9 looked at Donald Trump Part 10 looked at Paul Ryan

Part 11 looked at Ron Paul Part 12 looked at Newt Gingrich

Part 13 looked at Herman Cain Part 14 looked at Rick Santorum

Part 15 looked at Rick Perry Part 16 looked at Jon Huntsman

Most of you are probably more than familiar with Paul Ryan and his latest deficit cutting proposals, but take a look at this anyway, because it’s poweful and has Obama very worried!

Having looked at lots of talkbacks on different sites, I can tell you that Ryan is very very popular.

INTERVIEWER: Let’s start with the big picture, President Obama’s budget for 2012, for the next fiscal year that starts next October, calls for a five-year freeze on nondefense discretionary spending he says would save $400 billion. No addressing of entitlements. How is your budget different?

RYAN: His freeze locks in very high spending levels. It’s really more of a floor to gain (ph) — with 24 percent increase in discretionary spending. If we go to 2008 levels, we’d get another $400 billion on top of that over the next 10 years.

Nothing on entitlements. He does nothing to address the drivers of our debt. The public debt will double in his first term and triple by the end of his budget. He adds $13 trillion more to our debt.

He’s punting on the budget and not doing a thing to prevent a debt crisis, which every single economist tells us is coming sooner rather than later in this country. We will address these issues.

INTERVIEWER: All right, let’s talk about your budget. Widely reported that your budget will cut spending by $2 trillion over the next decade. True?

RYAN: Well, it’s more than that, quite a bit more than that.

INTERVIEWER: Three trillion?

RYAN: More than that.

INTERVIEWER: Four trillion?

RYAN: We’re looking at more than that right now. We’re fine- tuning our numbers with the Congressional Budget Office literally today, over the weekend. But we’re going to be cutting a lot more than that.

INTERVIEWER: So more than $4 trillion, which is a significant number, because that was the president’s debt commission cut the deficit by $4 trillion.

RYAN: Yes, we will be exceeding the goals that were put out in the president’s debt commission.

So how would a Ryan-Trump ticket play out?