China's inaction is the best America can hope for, argue James K Galbraith and Warren Mosler in the Guardian website 'Comment Is Free': Thank you, President Hu. It's a succinct rebuttal of the spate of economically ill-informed anti-China blather that Hu's visit to the United States has generated. They conclude their piece with these words:
...we might say a word of thanks to the Chinese, instead of blaming them for what they do.
I second those sentiments. After all, no is is forcing WalMart to source most of their imports from China, or the Chinese to prop up US Treasuries and help keep interest rates low.
Should Argentina have thanked its private creditors for financing its 1998-2000 deficits as well, and the IMF for financing its 2001 deficit?
China doesn't force Walmart to source in China, tho by holdings its exchange rate down, China certainly bribes Wal-mart to do its its shopping in China. And the bigger question whether the US should be thanking China (and others) for masking the impact of big fiscal deficits in an economy that doesn't save, or cursing those providing the rope the US is using to hang itself ...
I don't agree with Dr. O'Rear on the RMB peg, but I am on his side of the do deficits matter debate.
Posted by: brad setser | Sunday, April 23, 2006 at 08:54 PM
I like this very much! Thank you for discussing!And ill study your articles more regularly!
Posted by: pandora uk | Thursday, March 31, 2011 at 07:08 AM