http://www.blonnet.com/2009/06/23/stories/2009062350100800.htm
while i agree with Gurumurthy's point about the US role in the crisis - I disagree with him that the lax, individualism based morality in anglo saxon world alone explains all.
the hans share equal (if not more) blame in this game. the forced undervaluing of the Yuan has meant the Yanks can take everyone along for a ride. more than the arab petro states it is chinese credit to yanks that has caused these bubbles. the hans lend them so much money - they do not know what to do with it
the hans are in a bigger bind than the yanks. local consumption cannot replace exports as hans themselves dont like to play with rubber dog-poop. the slowing down will cause more riots and disturbances. meanwhile the fed prnting press assures that han investment in US treasury is devaluing by the minute
4 comments:
ghostwriter, it is a classic co-dependency situation. but the hans are pretty clever, and they figure that they can still prosper by imposing collateral damage on innocent bystanders such as 'useful idiots' india. worst case they can simply invade, and the karats and yechuris and the maoists will be there to welcome them.
Ghost writer,
What will happen, suppose, if america raised interest rates for savings tomorrow? Will they stem the rot of recession, atleast in another 3 or 4 years, by inducing their people to save?
The present insecurities that the american families face, will definitely impact on their spending culture, and there is more possibility that those families will start saving hereafter... (as the parents have to feed even their grownup unemployed children)
Right Angle.
That is only your dream. USA is coming up again after recession, this is applicable to Indian bloody call center gay culture.
sakthi,
I am not dreaming.. i am just asking the possibilities..
If we assume that US increases the interest rate, will the recession be reversed..
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