Washington Post, March 11, 2010 page A21:
Enthusiast economist Michael Pettis argues in his blog:"China Financial Markets":
"A country with more than $2 trillion in foreign reserves does not have to worry about debt problems. But those reseves (mostly in US$s) are not quite the safety net some imagine, because China couldn't liquidate them without hurting itself badly." Such assessment is similar or identical to my past blogs.
"China's addiction to exports for growth,transitioning to a sustainable economy won't be easy." Please compare the statement by the director of Congressional Budget Office(CBO)in my blog yesterday. Moreover,any prediction may be subject to changes. Professor Galbraith said:"There are those who don't know and those who don't know they don't know." Such statement seems funny but it is really true with wisdom.
Page A14: "The Obama administration is projecting an all-time high $1.56 trillion deficit this budget year, surpassing last year's $1.4 trillion and more than $1 trillion for 2011." Such figures are forcasts. China may be purchasing US securities as investment with trust in America. Cf. the prior blogs for understanding. All in all,USA/China must work together to try to solve mutual problems in the days to come.
Page B1,B8: Bike lanes to hit the big time in Washington D.C. and more bikes in Beijing as evidence for the common ground to save energy during the economic crisis in particular.
Francis Shieh a.k.a. Xie Shihao, a bystander to watch Sino-American Economics in action as a lifelong student.
Thursdaym,March 11, 2010 at 12 noon.