China: Worlds Fastest Printing Press (via Confessions of a Macro Contrarian)
January 24, 2011 § Leave a comment
I’m no China expert (it’s hard enough to follow and understand what’s going on in the U. S.), but I’ve long suspected that there are various holes in the Chinese growth model. This post about China’s currency inflation is very interesting. I think if we couple these concerns with other questions about the validity of China’s reported GDP, the increasing American paranoia about being overtaken by China should be viewed with more than a small grain of salt. On the other hand, America basically requires an outside threat to be our best; everything about our system is built around competition, without some foreign threat to worry about, we’ll just make one up.