http://blogs.wsj.com/chinarealtime/2010/10/18/schwarzman-regulators-slow-recovery/tab/comments/#comment-65438
I just posted this on the above Wall Street Journacl Article, incase they try and screen it, here it is:
"Uncertainty is the enemy of economic growth,” said Schwarzman, as customers remain “starved for funding,” thereby “retarding economic growth and job creation in the West.”"
No we are still in the credit crunch of the American Business Cycle.
I believe you analysis on Chinese Economics and West's posture is wrong. What has happened is that the West is based on a service bell curve which drives its business models into boom bust, as servies are fullfilled and employment gains and wains causing a multiplier affect in the economy of job creation then job loss. We have seen this after the saving and loans service bell curve, the .com service bell curve and most gigantically the mortage service bell curve as that service industry's mulitplier creates a much more substantial increase in jobs creation and intra domestic surlus of currency spending.
As such, the West has gone into a credit crunch as it does around this time. That is primarily do to the natural fact that ther is no liquidity. This means that the West business model has not created a new service industry to pikc up were the rest left off. As such since Western countries have become hugely dependant on Service industreis for their GDP reaching highs of 73% and median of 70% for western countries. This means that your statement that taxes will go up is primarily inconsistant with what we have saw. As such most economic analysis never actually place hold on politics. Well America is the most restrained on taxes by both sides. This means that it is more probable that infaltion will occur until the next service industry. Then there will be a feeding frenzy as the employment sector gains while creating a multiplier effect. However, as the next industry is going to be insurance, it will not have the huge peak as the mortgage industry did. Therfore, this then will cause the West to go through the same cycle all over again.
However, the I's have stepped in and are tired of watching a market place that is the wolds 2nd biggest economy, 2nd biggest buyer of oil and energy, 1st worlds hold of reousrces, trade surplus, foreign reservesm and a giganttic military with huge vast resoruce capabilites for leaps and bounds in technology.
This means that China will have to loosen their economic model as they have contractuall obligated to the WTO to do so. This means that protectionism such as currency pegging either through low currency or circumstantial slow movement as pegged to the US business cycle, will have to stop.
Further, the US will have to stop selling its debt to foreign countries. As its currency needs to weaken so that exports can become more susceptable to purchasing. Of course such things that the US producers no more will proable not be regarined by China's concentration on its domestic economy. However, this will allow other countries to start to compete in the international market place. As such this then will create more placesto export and import too the thngs that the US and other western countries do produce. While leaving China room to concentrate on domestic policy, and alos the worlds new found export import partners.
However, if China persists to create economic warfare impacts, it will be bad for everyone. As China's SOE's will go into re-captalizing, which we have seen before, as the Western economies can't keep up with their cheap products and neo-mercantalist high trade surplues wishes, Which means we might see again another Asianic crash even though some Asian countries have tried to create a high foreign reserve stock pile. However, this will not matter, as if the West crashes again the next time it will be harder. As Western jobs are still being exported at higher percentages than jobs are being created, even with the next weak level service industry sector being created.
Rider i
You have just been schooled by Mr. I
http://rideriantieconomicwarfare.blogspot.com/
Reach out and touch somebody baby.
This one is for Detroit and all those who lost their Childrens homes to Communist EW.
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