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Story (very short story with little detail) here: http://www.bloomberg.com/apps/news?pid=20601080&sid=aouOLtuT0A.0
But, in reality this is actually a good thing. In This Time is Different we saw that if every one has a recession at the same time then sovereign default becomes much more likely, that China's economy continues to grow is actually good for all of us, right?
Although many economists have been predicting for years that China would be the next world power I was alway unsure until recently. I wonder if China's ability to survive the economic crisis better than the rest of the world will put the country in the position to claim the role of a superpower. If China finances other countries debt China will increase its economic power for years to come.
ReplyDeleteI think that China's ability to remain stable is only good for the US because they do finance our debt, and if they were having hard times who knows what could happen....
ReplyDeleteNot only is China's economy stable, its booming. The United States economy is growing at 3% which is nothing compared to China's 10% expected growth. Also it is interesting to see that the exports could grow over 30%. Looks like we should maybe look into what China's doing right..
ReplyDeleteI agree with Kelsey I think that China's growth is only beneficial especially since they do hold a large portion of our debt. I cant believe China's economy is experiencing that kind of growth. China is one of the leading economies in the world so this is definitely good for stimulating economic growth in other economies as well.
ReplyDeleteI also agree with Kelsey on this issue. They have been financing the debt and supporting all these well publicized bailouts. If they were struggling as bad as many of the countries around the world have, they might have been forced to ask for repayment, leading to who knows what.
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