View Full Version : Beijing seeks an escape from the dollar trap

03-08-09, 19:19
Beijing seeks an escape from the dollar trap

By Peter Garnham

Published: July 31 2009 03:00 | Last updated: July 31 2009 03:00


03-08-09, 19:20
Another brick in China’s Great Wall of confusion

By John Authers

Published: July 31 2009 18:43 | Last updated: July 31 2009 18:43


03-08-09, 19:22
Get ready for lower Chinese growth

By Michael Pettis

Published: July 29 2009 23:27 | Last updated: July 29 2009 23:27

For 20 years, and especially in the past decade, rapidly rising debt has allowed America’s consumption growth to exceed economic growth, with a concomitant rise in the country’s trade deficit. One consequence of this too-rapid growth in American consumption has been that the non-US global economy was able to grow faster than non-US global consumption. This was especially true for Asia, the main beneficiary of the US consumption boom, and for China in particular.

While Chinese consumption was growing at an impressive 9 per cent a year over the past few years, Chinese gross domestic product growth substantially outpaced it, clocking in at 10 per cent to 13 per cent annually. China was able to do this in large part because as it poured resources and cheap financing into manufacturing, and in so doing produced many more goods than Chinese households and businesses were able to consume, the balance was exported abroad, where much of it was absorbed by US consumers.

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03-08-09, 19:23