Japan has a debt-to-GDP ratio of 280%. China is at 300% debt-to-GDP. China has over $34 trillion of debt, and its banking system is flooded with bad loans. The best estimate is that China banks have $11 trillion of bad loans . That $11 trillion is the annual GDP of China.
In addition, Europe, Latin America, and Russia are in big trouble. Also, you have OPEC in deep financial trouble because of the depressed oil prices. No, I did not leave out the United States. Its economy is bad, national debt-GDP ratio of 104%. However, relatively speaking, its economy is simply the strongest of the weakest, which is one reason why I am bullish on the dollar. Strengthening of the dollar should continue as the sovereign debt crisis unfolds.
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