1/6
Lou Jiwei's claim that the US is monetizing its budget deficit to transfer its debt burden to the rest of the world, especially to developing countries like China, shows just how terribly confused even fairly intelligent people are about the...
scmp.com/economy/china-…
Lou Jiwei's claim that the US is monetizing its budget deficit to transfer its debt burden to the rest of the world, especially to developing countries like China, shows just how terribly confused even fairly intelligent people are about the...
scmp.com/economy/china-…
2/6
basics of the balance of payments. Foreigners can only be "forced" to acquire US assets to the extent that their policies result in their running surpluses against US deficits. Saying that the world should not be forced to acquire American assets is exactly the same as...
basics of the balance of payments. Foreigners can only be "forced" to acquire US assets to the extent that their policies result in their running surpluses against US deficits. Saying that the world should not be forced to acquire American assets is exactly the same as...
3/6
saying that the world should not be allowed to run surpluses with the US.
Clearly this is the opposite of what Beijing really wants. As long as Chinese policies result in soaring trade surpluses, it must acquire foreign assets. The reason it acquires American assets is...
saying that the world should not be allowed to run surpluses with the US.
Clearly this is the opposite of what Beijing really wants. As long as Chinese policies result in soaring trade surpluses, it must acquire foreign assets. The reason it acquires American assets is...
4/6
not because the US forces it to do so, but rather because no other country would be able or willing to bear the cost.
I don't know how much longer the US is going to continue running these deficits, but the great irony is that if Washington were to take aggressive steps...
not because the US forces it to do so, but rather because no other country would be able or willing to bear the cost.
I don't know how much longer the US is going to continue running these deficits, but the great irony is that if Washington were to take aggressive steps...
5/6
to prevent foreigners from acquiring US assets, as it probably should, the economic consequences for developing countries, and especially for surplus countries like China, would be devastating. China would no longer be able to use US demand to resolve its large and rising...
to prevent foreigners from acquiring US assets, as it probably should, the economic consequences for developing countries, and especially for surplus countries like China, would be devastating. China would no longer be able to use US demand to resolve its large and rising...
6/6
domestic demand deficiency, and until Beijing managed its long-promised rebalancing of Chinese demand, either Chinese debt would rise even faster, or Chinese unemployment would soar.
domestic demand deficiency, and until Beijing managed its long-promised rebalancing of Chinese demand, either Chinese debt would rise even faster, or Chinese unemployment would soar.
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