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The conclusion makes sense only if every major economy participates. What about China and Russia? Granted, I doubt investors today trust either country without
by squozzer 10y ago
The conclusion makes sense only if every major economy participates. What about China and Russia? Granted, I doubt investors today trust either country without qualification, but if this goes on another 5 or 10 years, who knows?
- linkregister 10y agoOut of those two countries, Russia, a country with an economy smaller than that of Spain, is the only one not currently engaged in massive subsidies and stoking artificial demand (metallurgy, construction). China isn't engaging in QE but it is using other methods to prop growth. I doubt China's position is as tenuous as the Euro zone, but it is engaging in some similar practices. Russia is wholly dependent on the Euro zone as an export-based economy until it can improve internal consumption. It can't be relied upon to prop up the world economy in the event of an asset value correction.