Most of my writings thus far have been focused on the US and EU. But something dangerous is also manifesting beneath the calm surface in China and Japan.
Look at the for mortgage loan (orange) and and net profits (grey) for commercial banks in China. What does it tell you? A falling net profit in the loans could very well mean surging NPLs and this could have dire consequences for the banks which have over extended the loans to a staggering level.
Next is the chart form Japan. Despite the suport from the BOJ in buying up bonds and ETFs, the Japanese population is just not spending. Meanwhile the BOJ has over extended the balance sheet by more than 250% of GDP. If the Japanese are not spending, the economy will continually be in the doldrums, not to mention the BOJ missing its inflation target.
Added together we have the US, EU, China and Japan all tethering on the edge of a precipice with their enormous debt.
Look at the for mortgage loan (orange) and and net profits (grey) for commercial banks in China. What does it tell you? A falling net profit in the loans could very well mean surging NPLs and this could have dire consequences for the banks which have over extended the loans to a staggering level.
Next is the chart form Japan. Despite the suport from the BOJ in buying up bonds and ETFs, the Japanese population is just not spending. Meanwhile the BOJ has over extended the balance sheet by more than 250% of GDP. If the Japanese are not spending, the economy will continually be in the doldrums, not to mention the BOJ missing its inflation target.
Added together we have the US, EU, China and Japan all tethering on the edge of a precipice with their enormous debt.
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