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I only partially agree with this. The Chinese can spend their entire 7++ trillion in cash reserves over the next 5 years to support domestic economic maturity.
by jhancock 18y ago
I only partially agree with this. The Chinese can spend their entire 7++ trillion in cash reserves over the next 5 years to support domestic economic maturity. The U.S. must continue to borrow and sell off assets in order to do so.
- DenisM 18y agoHow would they go about spending 7 trillion? Serious question. If money is given to citizens they will likely hoard it rather than spend. Instead Chinese government used to give the money to American citizens because those never really save anything and it comes all back to stimulate the Chinese economy. Now this meachanism is broken. The only option left is government spending - "the new deal for China". Indeed that's what they are planning to do, but I don't think the new deal can replace the employment opportunities lost.