The Shotgun Blog
Friday, November 21, 2008
Beijing admits the situation is "grim"
They're just hoping no one ntoices that they have no idea what to do next.
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Situations like these are much easier to deal with in China. They can just let several hundred million people go hungry for a while. Who are they going to tell?
Posted by: dp | 2008-11-21 12:18:23 PM
Off topic, but do you watch Chinese monetary policy at all?
This comment by Jeffrey Rogers Hummel intrigued me:
"But since the housing boom was international, the widely observed anomaly at the turn of the twenty-first century of savings flowing from poor to rich countries, opposite of its usual direction, also has to be brought into the mix. In other words, my full account [of the financial crisis] would combine elements from the second and third alternatives above. If there is a traditional Austrian malinvestment story in this brew anywhere, I suspect the culprit will end up being Chinese monetary policy, not that of the Fed."
Hummel has dissented from most other Austrian economists in pointing to factors other than US Federal Reserve policies in the 2001-2008 era to explain the present financial crisis.
I don't know specifically what he's referring to here, but I'd be curious to know if you have an idea of exactly what Chinese monetary policy has been like over the last 10 years or so. Has it been very expansionary? It's hard for me to tell, not knowing where to look for graphs and numbers and with the yuan not being allowed to be traded freely.
Posted by: Kalim Kassam | 2008-11-21 12:43:10 PM
From your post, I fail to see the difference between the United States and China.
Posted by: Robert Seymour | 2008-11-21 6:02:02 PM
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