October 31, 2011 § Leave a comment

Follow the links to the original articles. They’re worth the read.

mawillits

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…

View original post 154 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

What’s this?

You are currently reading at Gravity7.

meta

%d bloggers like this: