According to an op-ed by Paul Krugman in the NY Times today, China is not only a currency manipulator, but also a cause of the world financial crisis. I usually have some respect for Mr. Krugman, so I’ll try to take his op-ed seriously. Continue reading »
This is the full session between Niall Ferguson and James Fallows at the recently held Aspen Ideas Festival. Allen had posted excepts and we promised you the complete discussion as soon as it became available. Niall Ferguson had coined the term “Chimerica” to describe the symbiotic relationship between the economies of China and the United States. He currently sees this relationship as being in jeopardy, while James Fallows feels the relationship is far stronger the most realize. This video is slightly over 75 minutes.
A friend directed me to this joke today. I vaguely remember hearing something similar years ago, but this version is now much more interesting because of a new/amended moral of the story, which addresses the Chinese investors but is perhaps just as relevant globally. Continue reading »
In a Q & A with Michael Spence, Nobel Laureate in Economics 2001, on the U.S. economic crisis on Squawk Box at CNBC, Spence makes some notable comments on China’s management of its economy and its responsible actions on the global economic stage. Continue reading »
“In the past, China has been blamed for the low-degree of internationalization of its financial industries. Now it seems we are profiting from this ‘fault’,” the commentary said.
Many Chinese economists share this view. “Our not-fully-open financial system and not-fully-convertible currency saved China from being rattled during the 1997 Asian Financial Crisis. And now again this seems to be a strong dam to protect us against the current financial tsunami,” an economics researcher with the Chinese Academy of Social Sciences (CASS) said.
“It is evident that the financial industries cannot become entirely market oriented. The semi-market, semi-government-control system may prove a better [system]. The problem in China is that the part of government control is too big and thus reforms are needed to deregulate.”
In early September, Steven N S Cheung, a Hong Kong-born Chinese-American economist living in exile in China, being wanted by the US government for alleged tax evasion, claimed that China “has formed the best system in the history of human kind”.