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CHINA: Global Crisis ‘Inevitable’ Unless U.S. Starts Saving

- Another global financial crisis triggered by a loss of confidence in the dollar may be inevitable unless the U.S. saves more, said Yu Yongding, a former Chinese central bank adviser.

It may be helpful if “Geithner can show us some arithmetic,” said Yu. “We need to know how the U.S. government can achieve this objective.”... Read full article »
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  • +7 raves BillySteve June 02, 2009 02:33:21
    BillySteve
    Does anyone else out here agree that it's bizarre that a country run by a "Communist" Government is giving the American people better advice than its own government?
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  • Dwight Mann June 07, 2009 17:19:49
    Dwight Mann
    The Chinese are very conservative in every thing they do. . .
  • Jo June 06, 2009 13:05:11
    Jo
    I never thought I would agree with the Chinese on anything, but they're right.
  • Alex Catgirl June 02, 2009 16:13:18
    Alex Catgirl
    I wonder if the dullard gave any thought to who is going to be buying all the exports China keeps dumping. He's trying to redefine "trade" via fiscal policy, most of the world uses this little metric called "Balance of Trade", which China hopes goes away.

    That's the problem with export economies, nobody is going to let ya dump in their backyard if you don't compensate them. Such compensation usually takes the form of buying huge amounts of the big importer's currency.

    He's also never heard of the Paradox of thrift - If we all save at the same time, we all become poorer.

    So while Americans must indeed save more, the Chinese consumers must spend more, or global economy go boom again. Economics 205 =/
  • +1 raves
    msdana June 02, 2009 15:09:42
    msdana
    What I find scary is the fact that our own government is blind to the disaster that it alone is creating, who in their right mind wants this to continue. As it is our children and grandchildren and even great grandchildren are going to be in debt to the government. I really want to see Obama out of there along with Reed and Polosi.
  • DON June 02, 2009 14:08:17
    DON
    The govt wants us to think the recession is over so we will start spending, I think it is just getting started and we will be headed for depression like my grandparents saw. Im saving all I can also stockpileing all I can of non perishables. May e crazy but my grandparents always taught me to be prepared for anything.
  • gr8punkin June 02, 2009 13:25:15
    gr8punkin
    It may be helpful if “Geithner can show us some arithmetic,” said Yu. “We need to know how the U.S. government can achieve this objective.”

    facts and figures have never been the strong suit of the Obie administration.
  • +2 raves
    ray June 02, 2009 13:00:54
    ray
    " It may be helpful if “Geithner can show us some arithmetic,” said Yu. “

    Hey Tim "Got Arithmetic?" ...The Treasury Secretary is supposed to be a financial genius but his method seems to be addition by subtraction...and then fudging the product.

    I think Timmy's overmatched. The CBO was on to him; and
    the Chinese invented the abacus.
  • duminda723 June 02, 2009 06:36:49
    duminda723
    Solid advice. However the spending we are doing now is needed in my opinion. China also spent considerable stimulus money of its own.
    http://www.newser.com/story/4...

    China is playing a political game of warning the US that it is concerned about its investments and trying to reduce confidence on US financials so they can push for a reserve currency other than the dollar. A smart play but unlikely to work. The US dollar is still the most reliable currency.
    http://www.npr.org/templates/...
  • +2 raves
    Edmund ... duminda723 June 02, 2009 12:50:58
    Edmund Jenks
    Not for long ... the other shoe to drop in this Carter's Second Term will be the inflation brought about when the Obama Administration releases the One Trillion Dollars he had the treasury department print up in order to appear to be covering the massive debts he and the Congress just rang up with Stimulus and Omnibus. The spending ain't over either.

    The dollar will be just like Brazil's currency was in the late Eighties - Hyper-Inflated!

    I do not get how NPR is a credible news source - after all, Congress and BHO are a payin' the bills!
  • duminda723 Edmund ... June 02, 2009 18:11:20
    duminda723
    Well as for the news source you can look up the incident. It was reported by a number of outlets. When China asks the world to drop the US dollar it gets pretty good coverage.

    Inflation is a worry whenever you are coming out of a recession. There is obviously an artificially large amount of currency in circulation once we come back up. Especially if we come up too fast. However as of now inflation isn't a worry. We need to get our economy up first then see where we stand before we can possibly plan for a double dip. If the need arises the Feds can always increase interest rates to counter inflation, though this may have other detrimental effects.
  • Edmund ... duminda723 June 02, 2009 21:35:13
    Edmund Jenks
    Good response, however this rocket ship of Government expansion, what with a 3.6Trillion Dollar one year budget proposal in the wings, and the biggest waste of Government spending (think medicare and social security) that goes against personal freedom - universal healthcare being pursued ... we are in big trouble and that is exactly why the students in China laughed in Tim Geithners face!

    Your analysis, and the analysis of your sources has strayed way far from the fact that the socialist and radical idealism of Obama will override economic common sense.

    Here in Carter's Second Term, it not a matter if we will suffer great economic hyper-inflation or not ... it is just a matter of when.
  • duminda723 Edmund ... June 03, 2009 05:03:04
    duminda723
    I disagree fundamentally that medicare/medicaid, social security and universal healthcare will take away freedoms. I'm not saying our system of medicare/mediciad or social security is the best possible system, it obviously isn't, but it has helped large amounts of people. It can be made more efficient. A recent study published in the New England Journal of Medicine came to the conclusion that the US wastes more money than it would actually need to cover everyone (Source bellow). We are the only 1st world nation that does not cover its citizens. While I'm by no means suggesting we simply adopt one of the European or Canadian systems, we can still improve ourselves.
    http://www.medicalnewstoday.c...

    In regards Economics, Obama is not following some radical agenda. His policies are backed by evidence. Government spending can and will bring up the economy. FDR and Japan's recession in the 90's both point to the importance of a consistent and coordinated government spending plan. Also healthcare is a huge drain in our economy that needs reworking. Just the threat of reform has caused insurers to voluntarily come up with a plan to save 2 trillion.
    http://features.csmonitor.com...

    From where I'm standing Obama seems to be doing well so far.
    I disagree fundamentally that medicare/medicaid, social security and universal healthcare will take away freedoms. I'm not saying our system of medicare/mediciad or social security is the best possible system, it obviously isn't, but it has helped large amounts of people. It can be made more efficient. A recent study published in the New England Journal of Medicine came to the conclusion that the US wastes more money than it would actually need to cover everyone (Source bellow). We are the only 1st world nation that does not cover its citizens. While I'm by no means suggesting we simply adopt one of the European or Canadian systems, we can still improve ourselves.
    http://www.medicalnewstoday.c...

    In regards Economics, Obama is not following some radical agenda. His policies are backed by evidence. Government spending can and will bring up the economy. FDR and Japan's recession in the 90's both point to the importance of a consistent and coordinated government spending plan. Also healthcare is a huge drain in our economy that needs reworking. Just the threat of reform has caused insurers to voluntarily come up with a plan to save 2 trillion.
    http://features.csmonitor.com...

    From where I'm standing Obama seems to be doing well so far.
    (more)
  • Edmund ... duminda723 June 03, 2009 14:07:04
    Edmund Jenks
    I am really, really sorry that you disagree fundamentally that medicare/medicaid, social security and universal healthcare will take away freedoms. Just WHO do you think will be making the decisions ... the most critical and basic decisions about what healthcare anyone will receive - the individual or the Government. When they allocate (not spend) the dollars, they will decide NOT to do something as opposed to administer the care to keep one healthy or alive. I want to KEEP that decision making at the individual level.

    You probably think that the Obama Administration does not want to run GM either ... but Barack Obama, himself is making major and critical decisions so the fact remains that he and his Administration headed by a 31 year old politico with no, I repeat, NO business experience whatsoever. This is the decision making and leadership character of our radical and socialist new President.

    Bend over and kiss all of our axxex GOOD-BYE!

    You do NOT have a grip on reality and I will not continue to respond to dialog that refuses to recognize the reality of what Government actually does when it gets involved in anything. Social Security is a failure, Medicare is a failure, TARP as it was applied to save the automobile industry was a failure (remember too big to fail? ... right...
    I am really, really sorry that you disagree fundamentally that medicare/medicaid, social security and universal healthcare will take away freedoms. Just WHO do you think will be making the decisions ... the most critical and basic decisions about what healthcare anyone will receive - the individual or the Government. When they allocate (not spend) the dollars, they will decide NOT to do something as opposed to administer the care to keep one healthy or alive. I want to KEEP that decision making at the individual level.

    You probably think that the Obama Administration does not want to run GM either ... but Barack Obama, himself is making major and critical decisions so the fact remains that he and his Administration headed by a 31 year old politico with no, I repeat, NO business experience whatsoever. This is the decision making and leadership character of our radical and socialist new President.

    Bend over and kiss all of our axxex GOOD-BYE!

    You do NOT have a grip on reality and I will not continue to respond to dialog that refuses to recognize the reality of what Government actually does when it gets involved in anything. Social Security is a failure, Medicare is a failure, TARP as it was applied to save the automobile industry was a failure (remember too big to fail? ... right), and every expansion of this Government, any Government will result in less that ideal levels of success. You may want to ignore the obvious that when the Government involves itself in something ... the individual looses the CONTROL to make the decisions and hence fundamentally medicare/medicaid, social security and universal healthcare will takes away basic decision-making freedoms.
    (more)
  • duminda723 Edmund ... June 03, 2009 17:38:36
    duminda723
    Hmm it seems we do have vastly different views so I won't bother posting a long winded response.I think what you are going for is just not feasible. You want to give up absolutely no freedoms. In a country of our size we give up certain freedoms everyday for the betterment of our society. For example we follow set laws and set education (for public schools at least). If the States didn't give up certain freedoms we would never have formed this nation.

    While I suppose I can understand your point about giving up freedoms for having amenities like retirement and healthcare covered, the truth is most people just want to be covered. This is my field and though I have just begun, I have already seen a few cases where patients opt-out of life saving procedures because they can't afford it. We can argue about potential freedoms lost as if it was some idealistic argument, but in reality people in the world's most powerful nation are dying because they can't get basic treatment.
  • +2 raves
    DavE June 02, 2009 05:35:36
    DavE
    The deficit is projected to reach $1.75 trillion in the year ending Sept. 30 from last year’s $455 billion shortfall, according to the Congressional Budget Office.
    What a total disaster from the Socialist leaders in Washington. They destroy wealth. They are committing crimes against America in their pursuit of personal power, money in their pockets and unfettered socialism.
  • +1 raves
    MadCitySioux June 02, 2009 05:25:25
    MadCitySioux
    I have always wondered how Obama plans to save the US,. For a guy who does a lot of talking he sure doesn't do any explaining.
  • +1 raves
    mjaeu June 02, 2009 03:31:06
    mjaeu
    that just sucks! I mean do we not see the potential crisis ahead? what more does the WH need to see?
  • +2 raves
    lucy June 02, 2009 02:48:04
    lucy
    Well, when you have a psuedo babbler in office that doesn't have a clue about markets or finance...who's he going to ask what to do and How to handle things.??? He sure doesn't have a clue himself, and with that we are going to be in a serious world of hurt. Of all things, it is strange that China would be worried for us. But, they do have major holdings...I reserve my minutes..my computer is nuts!
  • +7 raves
    BillySteve June 02, 2009 02:33:21
    BillySteve
    Does anyone else out here agree that it's bizarre that a country run by a "Communist" Government is giving the American people better advice than its own government?
  • +3 raves
    mjaeu BillySteve June 02, 2009 03:32:01
    mjaeu
    bizarre maybe, worried more so...
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