China's Buildup of $26 Trillion in Public, Private Debt

The video discusses China's $26 trillion debt, exploring whether it poses a threat to the global economy or is a manageable outcome of economic growth. It highlights the rapid increase in borrowing, compares it to past financial crises, and examines the challenges of managing this debt without slowing economic growth. The video also presents differing views on the debt's impact, with optimists believing in growth solutions and pessimists advocating for policy interventions.

What is the estimated percentage of China's total borrowing relative to GDP at the end of 2015?

• 247%

• 200%

• 283%

• 164%

What event prompted Beijing to order local governments to build infrastructure in 2008?

• The 2008 financial crisis

• The 1980s debt bubble

• The 1990s economic bust

• The 2015 stock market crash

Which country's debt bubble is China's borrowing binge compared to?

• United States

• United Kingdom

• Japan

• Germany

What do optimists believe about China's debt situation?

• It will lead to a global recession

• It is a self-correcting problem

• It will cause a financial crisis

• It requires immediate policy intervention

What is one of the strategies mentioned to tackle nonperforming loans in China?

• Cutting interest rates

• Reducing exports

• Increasing taxes

• Raising tariffs