We have seen the future, and it sucks.

Dangers of an Overheated China

29th November 2009

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PRESIDENT OBAMA’S recent trip to China reflects a symbiotic relationship at the heart of the global economy: China uses American spending power to enlarge its private sector, while America uses Chinese lending power to expand its public sector. Yet this arrangement may unravel in a dangerous way, and if it does, the most likely culprit will be Chinese economic overcapacity.

2 Responses to “Dangers of an Overheated China”

  1. Roy Heath Says:

    I’m very confused. That was both lucid and moderately critical of the current administration’s policies. Plus, the author is a prof at George Mason. Does Paul Krugman allow that?

  2. Tim of Angle Says:

    Once in a blue moon sense sneaks into the New York Times. Even a blind pig can find an acorn now and then.