Washington Post, April 6, 2009 on page A15:
"Vast trade imbalances(American deficits, Asian surpluses) and massive, offseting international money flows are attributable to global economic crisis.
Low prices for imported goods such as shoes,computers,TVs encouraged overconsumption. From 2000 to 2008, the US trade deficit with China ballooned from $84 billion to $266 billion. China's foreign exchange reserves are now an astonishing $2 trillion." as Samuelson had written and so published.
It is clearly evident that American consumers have been benefited for the less expensive products of good quality. Such is the Law of Comparative Advantage for free and open international trade as I have observed the Sino-American economics in action.
Page A8: "In Shanghai,Never too old for Barbie doll. In the USA,Barbie and Barbie products are considered toys and are marketed primarily for girls 8 years old or younger. Not so in China. 30-something women mobbed the newsly opened Barbie store. They were browsing the animal-print scarves,gourmet chocolate from Lari, one of Shanghai's most exclusive restaurants on the Bund, a famous avenue, and a $10,000 wedding dress designed by Vera Wang." Such is the evidence of consumers' clout to purchase with money.
Francis Shieh a.k.a. Xie Shihao watching the global economic crisis and the ways and means for G-20 to try to resolve such crisis in due course of time in the 21st century.
April 6, 2009 at 10.28 a.m.
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