Wall Street Journal, March 24, 2008 Page C1: The budget has been in deficit for most of the past two decades. However, central banks(including China's CPB) have been financing the profligate spending of US consumers by snatching up Treasury bonds keeping interest rate low. At some point, they start to worry about America's ability to pay its growing debts. US will have to start delivering too.
Such is Sino-American economics as well. We are watching the developments.
The above lines are published by The Wall Street Journal, March 24, 2008
Francis Shieh a.k.a. Xie Shihao on March 24, 2008 at 2.25 p.m.