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Jared Bernstein: The China Dance: It Ain't No One Step

Neither China, nor any other country, has "unlimited financial resources." Finite resources are, in fact, the core principle of economics. When you tee up the problem that way, you risk missing the actual problem, which is a combination of state power and the savings imbalances noted above. As the authors note, it has long been the policy of China to suppress household consumption, virtually insuring both excess national savings (Pettis stresses that Chinese household savings are not unusually high) and wide-spread poverty (though they should have noted that there are at least internal noises in China pushing the other way -- we'll have to see what they amount to).
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