Wall Street Journal,March 9, 2010 on page A17: China airs concern over debt in regions fearing that local governments won't be able to pay back all the loans.
Page A8: US Fiscal policy on unsustainable path: To wit: -
"The US federal budget deficit is on a trajectory that poses significant economic risks and will become unsustainable. Douglas Elmendorf,Director of the Congressional Budget Office made such statement before the National Association for Business Economics. The deficit will swell from the $6 trillion baseline forecast by 2020 to just shy of $10 trillion. The debt held by the public with current tax policies extended would soar to 90% of GDP by 2020."
Perhaps both China and USA appear to be entering unfamilar territory in the level of public debt. That remains to be seen. Perhaps the forces of serendipity would come to play in due course of time.
Page 3B: Positive scenario:- Mark Kiefer of the aerospace organization says:"The economy in China has grown very rapidly with rising income for folks to travel.
Francis Shieh a.k.a. Xie Shihao sees the two sides of the coin. In other words,when we are debt-ridden,we are on the credit system. Be happy and gay and go lucky to enjoy life in the mundane world with the credit cards as near money.
Tuesday,March 9, 2010 at 2 p.m.