The world cannot find sustainable growth until economies like the U.S. and China become more self-sufficient. That means deficit trading countries like the U.S. need to start consuming less, saving more and producing more. And export-centric countries, especially China, need to start exporting less and building more domestic-led growth.Utter nonsense. The problem is entirely that of the unstable and ever-shifting currency exchange rates caused by the games our government plays with deficit spending and Federal Reserve manipulations.
That America imports more than it exports is an interesting but meaningless statistic. And the first person who says that China is funding our buying goes and sits in the corner. They're not -- they are, however funding much of our government's predilection for spending more than it has.
That's the problem -- it's the spending, stupid.
4 posted on
11/15/2009 12:12:04 PM PST by
BfloGuy
(It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect . . .)
I wish someone could explain in somewhat simple terms what China's yuan pegged to US dollars really means to common every day people. It's very confusing to me.