Jodelie,

China's gross debt /GDP ratio is roughly the same as Australia's. The difference is that for this debt accumulated over more than a decade by China is that they have $trillions of roads, power stations, high speed rail etc, all infrastructure geared to improving productivity.

Australia had almost no debt 6 years ago, and after 2 labor terms has a huge debt with nothing to show for it except a few unneeded halls that don't add $1 to the nations productivity, and screeds of regulations and taxes that are strangling business.

Jodelie, China's debt bubble is the total private + public debt. It has increased by $14 trillion in 5 yrs. Our banks have loaned $230 billion into the Chinese bubble market.

Our present Govt debt is $300 billion or 20% of GDP. Hockey has increased the debt ceiling to $500 billion which will probably be used to bail out banks and pay for the unemployed.

The whole financial system is totally interconnected and we too can go down just like Greece or Spain.