Judging by our standards and our thinking and our financial structures it would be a valid observation. However, as I said in prior comments on this blog, China is not playing our debt money game!
It is like saying that according to my beliefs you are going to hell for the wrong things you do because I would go to hell in accordance with my beliefs if I did them and I believe that those things are wrong to do and hell as punishment certainly exists.
Tell that to China and they would laugh but that would not in fact happen because they are inscrutable and playing this big Money Game that none of us understand or understand only in terms of our own system which we believe is a universal system.
China: Keep on being inscrutable. Play your own game. Keep a poker face. Let us believe what we will.
China will win all and have the last laugh on our debt money system.
http://www.nytimes.com/2013/07/19/opinion/krugman-hitting-chinas-wall.html?_r=0
This is one of the few comments that suggests that we do not know as much as we have convinced ourselves must be true about our own debt money system and China's monetary and financial system.
- Uziel
- Florianopolis
Predicting
the end of China's extraordinary growth cycle of three decades became a
favorite summer sport among some Western economists. Prof PK is on
board this bandwagon. From a rigorous academic standpoint, there is a
major flaw with such predictions.
According to Prof PK " all economic data are best viewed as a peculiarly boring genre of science fiction, but Chinese data are even more fictional than most. Add a secretive government, a controlled press, and the sheer size of the country, and it’s harder to figure out what’s really happening in China than it is in any other major economy."
The statement above, that I agree with, raises an important point. Western economists don't quite understand what is really going on with China's economy.
The obvious conclusion is, if we really don't know China's economy, how can we predict the end of its growth cycle and a major financial crisis?
Prof PK and other Nobel Prize winners in economy did not have a slightest hint about the incoming financial meltdown of Wall Street in 2008/9. If they don't know and understand their own economy, why to bother about China?
Another rate comment
REDACT:
If this column is read 5 years from now, it will be seen as meaningless
pap. The economic management of the Chinese economy is being done by
hard scientists and engineers, not western clueless politicians. China's
governors operate according to conservative economic principles that
will continue to increase the weal of their people. Paul's liberal
fables lead him to make statements that have no meaning at all. China
will continue to do quite well under firm, conservative management that
does not devalue money and treasures capital. The next 5 years of
Chinese economic management will create another historical data point
that will debunk liberal economic myths. China's business is business.
As a continuing effect of that activity, a hundreds of millions of
people will be raised out of poverty and a billion people will see an
increase in their economic welfare. The Chinese are lucky they do not
have lying, clueless politicians and academicians that sway the masses
into chaos.
According to Prof PK " all economic data are best viewed as a peculiarly boring genre of science fiction, but Chinese data are even more fictional than most. Add a secretive government, a controlled press, and the sheer size of the country, and it’s harder to figure out what’s really happening in China than it is in any other major economy."
The statement above, that I agree with, raises an important point. Western economists don't quite understand what is really going on with China's economy.
The obvious conclusion is, if we really don't know China's economy, how can we predict the end of its growth cycle and a major financial crisis?
Prof PK and other Nobel Prize winners in economy did not have a slightest hint about the incoming financial meltdown of Wall Street in 2008/9. If they don't know and understand their own economy, why to bother about China?
Another rate comment
- stanroc
- Rochester
