Recovery Rides on The G-2 i.e. USA and China

Washington Post, March 6, 2009 on page A15: An article with eye-opening insights from Zoellick and Lin of the World Bank Group to be shared with readers of Sino-American Economics at www.Blogger.com for brainstorming endeavor.

"China's economic growth will plunge in 2009. The United States is in severe recession. For the world's economy to recover, these two economic powerhouses must cooperate and become the engine for the Group of 20. Without a strong G-2, the G-20 will disappoint."

"The root cause of broader global payment imbalances is structural. Overconsumption in the US and oversaving in China." My comment:Lifestyles re tradition and custom of the folks are different in USA and in China as I sent my prior blogs.

Household savings in China are about 20% of GDP but the savings rate in USA is low as known.

The two countries should join forces to prevent a protracted global recession. Both nations have announced stimulus packages.

To achieve its leaders' goal of building a harmonious society,China needs to improve its income distribution. President Obama in USA is stressing the same direction for distribution of wealth as his goal dedicated to a changing America for ethics and morality in fairness for all Americans.

There are strong mutual incentives: The US is the largest destination for Chinese exports, and China is the largest foreign investor in US government debt. The economic interdependency is stark.I would add" PERIOD." as I envisioned such.

Perhaps it would be high time for thinkers and scholars to study Adam Smith,Ben Franklin to be synthesized with the thoughts of Confucius and Mencius as I have been studying as a lifelong student of economic philosophy of Western and Eastern ideas and ideals for the benefit of humanity in the 21st century and beyond...

NOTE: Robert B. Zoellick is president and Justin Yifu Lin, chief economist and senior VP for development economics of the World Bank Group.

Francis Shieh a.k.a. Xie Shihao is gratified to compare notes with two distinguished economists for the future direction of global economy in the days to come. In April,we shall see official announcements of G-20 leaders sharing the same rationale for G-2 for Sino-American Economics for world economic recovery.

Friday, March 6, 2009 at 9.56 a.m.