October 31, 2011 § Leave a comment
Follow the links to the original articles. They’re worth the read.
In fact, China is more like a shopkeeper who keeps allowing his customers to run up higher and higher tabs on credit, for fear that if he doesn’t, they won’t be able to keep buying and he will go out of business. That certainly isn’t good for the customers, who end up getting into greater and greater debt, but it isn’t a particularly good position for the vendor to be in either.
I have heard some argue, in reaction to Subramanian’s op-ed, that China participating in the EU bailout would somehow hasten the acceptance and credibility of the Renminbi as an “international” currency — a key development Subramanian sees as heralding the dawn of Chinese economic and political supremacy. Regarding that goal, however, I would rank, in order of importance, the following as far greater priorities and/or obstacles:
1) Giving people outside of China some way to earn and accumulate RMB by becoming a net exporter rather than massive net importer…
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