China and Greece Show Not All Debt Is Created Equal

It’s control which counts

Chinese Prime Minister Li Keqiang (L) and Greek Prime Minister Antonis Samaras take part in a joint press conference at the Maximos Mansion in Athens after a meeting, on June 19, 2014. Louisa GouliamakiAFP/Getty Images

If Greece was China, debt would not be an issue. Both countries have a total debt load several times of GDP and only Greece keeps tinkering on the verge of default.

The difference between default (Greece) and pretending nothing is happening (China) lies in the extent of control the two countries have over their money systems.

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