Yesterday, NPR ran a segment about Europe turning to China to help fund its bailout package, contrasting Arvind Subramanian’s view — that this signals an important shift in the balance of economic power — with my own — that China’s piling up of foreign currency reserves is part of the problem, and that if China wanted to do Europe, and itself, a real favor, it would spend those reserves rather than lend them.
When in doubt, recycle... In this case the rumor that China would bail out Europe is about to get second billing. From Bloomberg, quoting Wen Jiabao at the Dalian World Economic Forum: WEN SAYS CHINA WILL CONTINUE TO INCREASE INVEST... Read Post
Hedge fund legend George Soros says bailing out countries alone won't solve Europe's sovereign debt crisis and, instead, the region's bailout fund needs to be used to support its banks. He believes that if Europe doesn't take contro... Read Post
Arvind Subramanian, the author of Eclipse: Living in the Shadow of China's Economic Dominance, may be the only respected economist who thinks China's GDP has already passed America. So what does this uber bull think of the hard land... Read Post