tag:blogger.com,1999:blog-4740849900073154554.post790929925214006153..comments2023-08-25T17:30:36.937+05:30Comments on Business Musings: China's debt problemRameshhttp://www.blogger.com/profile/11782192840421019943noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-4740849900073154554.post-2296236826578615902014-01-08T13:47:51.499+05:302014-01-08T13:47:51.499+05:30@Ramesh: I could be completely wrong and talking a...@Ramesh: I could be completely wrong and talking at 30,000 feet. But it appears that India's big advantage over China is not democracy and a free press, it is that it is not (yet) an investment lead economy on the scale of China. It still has a reasonable balance between consumption and investment and while it is not perfect, it is much better than China. Would I be correct? If so, we have of course squandered this advantage by putting in so many inefficiencies, a slothful and wasteful civic infrastructure, a rent-seeking civil service, a "chalta hai" culture - and of course topped off by egregious corruption. If these could be corrected our economy could right itself in no time - even at the risk of senior politicians swindling money. What say you?Ravi Rajagopalanhttps://www.blogger.com/profile/17321251570712041230noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-61703012720544658062014-01-07T11:48:24.557+05:302014-01-07T11:48:24.557+05:30Thanks for sharing this with us, I completely agre...Thanks for sharing this with us, I completely agree with you.. More news here : <a href="http://currentnewsofindia.com/" rel="nofollow">Indian News Site</a><br />Anonymoushttps://www.blogger.com/profile/07790320864227930293noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-33379574212639456182014-01-06T09:02:58.604+05:302014-01-06T09:02:58.604+05:30@Gils - That's an interesting thought - excess...@Gils - That's an interesting thought - excess capacity leads to expansionism outside. China's big reach into Africa to secure sources of raw material and food can be seen in that context. Maybe Maybe .....Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-15663422719278489862014-01-05T23:12:17.966+05:302014-01-05T23:12:17.966+05:30I am less than zero when it comes to economics. By...I am less than zero when it comes to economics. By investing in infra and defence on such a heavy scale, maybe china is reinventing the imperial wheel?? from what I understand from history, when the European powers reached the same situation at home, they looked outwards for riches and that probably made them go mad after the 'new world'!! who knows where china might turn to? maybe that's the reason why they so religiously guard after every square inch of visible surface, over and under the world wide oceans?gilshttps://www.blogger.com/profile/03259194565523548553noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-13723046879423193952014-01-05T21:48:23.548+05:302014-01-05T21:48:23.548+05:30@Prats - Yes industry has benefited from infrastru...@Prats - Yes industry has benefited from infrastructure, but there has also been lots of spending in China which benefits nobody - ghost cities, highways to nowhere, manufacturing plants where none are needed, etc etc<br /><br />China is losing its competitive edge of low cost in mnaufacturing - they are no longer low cost. The advantage they now have is that nobody can produce on such scale with such reliability as China.Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-1409079502737711432014-01-05T15:16:59.675+05:302014-01-05T15:16:59.675+05:30The benefit which China has is the physical manufa...The benefit which China has is the physical manufacturing which is getting all the push which is the most to gain out of all this infrastructure. <br /><br />Imagine if one day China stops all the exports the world would go helter skeltor. There is hardly something I use which is not manufactured in China. I believe the answer to China's debt lies in the gradual rise in export taxes to fund all the infrastructure debt along with fiscal control on the future debt spending on infra. Pratshttp://prats.co.innoreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-68564251973289629872014-01-05T10:49:40.076+05:302014-01-05T10:49:40.076+05:30@Shy - Yes, most governments tend to squander away...@Shy - Yes, most governments tend to squander away money. Its a bit like giving a flower garland to a monkey as an old Indian saying grows. Oh - the amount of money that the Chinese politicians have swindled is many times more than what their Indian counterparts have done - corruption in China is staggering.<br /><br />@Sriram - Yes, Soros commented on the risks from China as part of his overall assessment of risks in 2014. He has a similar take. The problem with China is opaqueness and the difficulty in comprehending risks for an outsider. It takes a lot to understand China and there are not too many with that capability outside of that country.Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-21326861520888953512014-01-05T09:59:19.766+05:302014-01-05T09:59:19.766+05:30There was something by Soros on the China debt iss...There was something by Soros on the China debt issue that flashed on my screen yesterday, which I didn't read because of the extra long trip (did I tell you that the delayed flight knocked off my connection to Eugene, and the airline had me stay put in Denver for the night?) I am always suspicious of Soros--he is not by any means an unbiased commentator--but it seemed like he, too, wanted us to watch out for China's soaring debt and the balancing the Party has to do because slower economic growth means problems.<br />(though the growth with all the environmental impact is an awful bargain as we have both often noted!)Sriram Khéhttps://www.blogger.com/profile/06724218458246880137noreply@blogger.comtag:blogger.com,1999:blog-4740849900073154554.post-52140802029047934692014-01-04T23:02:05.360+05:302014-01-04T23:02:05.360+05:30Every economy seems to be struggling with basic pr...Every economy seems to be struggling with basic principles not being followed. China atleast spent money on building infrastructure and lent to businesses to set up factories.... thankfully not like India where the money was to go towards investments in infra and business but reached the caymans fattening accounts of politicians/their cronies and never reached any intended!!!Anonymousnoreply@blogger.com