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Could China's Economic Policies Trigger Another Crisis?

time.com — Just before the global financial crisis exploded, the conference halls in China were alive with the rhetoric of economic reform. Hardly a week went by without some think tank or ministry in Beijing toasting the 30th anniversary of China's great opening to the world and outlining what the next phase of China's historic development would entail.

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  • zacharytelschow, on 11/03/2009, -3/+21The real question is could US economic policies trigger another crisis? Where is THAT article from Time?
  • NorthMass, on 11/03/2009, -6/+16Like Peter Schiff has repeatedly said, China will eventually stop exporting goods to us, and instead they will consume the goods they produce, which will rapidly raise their standard of living while rapidly decreasing ours while at the same time the Dollar crashes. And to be honest, why shouldn't the Chinese consume their own goods, instead of shipping it out to us for pennies on the dollar?
  • Clark1984, on 11/04/2009, -1/+9Too much savings and too little consumption is a far better problem to have than too little savings and too much consumption. China will hit some bumps in the road during the transition but ultimately the States have much more to worry about.
  • Sagags, on 11/04/2009, -2/+10Thank god digg has so many economist to explain everything.
  • Gregfr, on 11/04/2009, -1/+5Remember at the beginning of Obama's term, Tim Geitner said that "China is probably manipulating its currency". But, even though this statement is obvious and understates the reality, he had to withdraw this comment because China complained about it. It wouldn't have been the same if China didn't hold such a large part of the US debt. Some lawmakers understand the problem but they can't do a thing about it.
  • Dregganaut, on 11/04/2009, -0/+3apparently you have difficulty distinguishing between sensationalism and partisanship
  • SoulGrub, on 11/04/2009, -1/+4@NorthMass, I would guess that China is happy with the current rate of progression of their economy and they value stability. Changing the current arrangements, lopsided they may be, may have unintended consequences.
  • Pinkertinkle, on 11/04/2009, -1/+4Maybe, but America's policies already triggered a couple.
  • TSK05, on 11/04/2009, -2/+5That's a question? I think pretty much everyone can easily say "yes"..
  • allisonV12, on 11/04/2009, -0/+2" loaned, mostly to the U.S. government, which enabled Americans to go on borrowing and spending. China, policymakers said, intended to break this unhealthy cycle."

    Good

    America seems to be lurching from one crises to the next and I'm sure China doesn't want to be anywhere near the giant when it topples over.
    Or will America have its own cultural revolution brought on by crises or stagger into the darkness of a failed police state with a media aping the agenda of the economic survivors.For all the failures of communism the communist intellectuals did map out what is happing today,they were off by a few decades,interrupted by a few wars that artificially pumped up capitalism again....wonder if the Chinese new guard is aware of this.
  • Dregganaut, on 11/04/2009, -0/+2Yeah those ***** at time, they're such traitors....
  • ramiro, on 11/04/2009, -0/+2Buried for being nasty without need.
  • Gregfr, on 11/04/2009, -0/+2Because you can't buy Chinese currency as you want and therefore it doesn't follow the law and supply and demand. That's the difference.
  • poprocket1, on 11/04/2009, -0/+2China has such large export is mostly due to out sourcing by foreign counties. And the export will no doubt continue to grow because its cheaper to produce goods over there than here in the States.
  • PandaBearShenyu, on 11/04/2009, -2/+4We just triggered a massive global recession, now let's start blaming the only country that we didn't ***** over for something... wait, wat. Anyways, the apparent American paranoia towards anything CHina does is an embarrassing showcase of severe insecurity.

    "HU JIN TAO FARTS! Could this be the start of a new generation of communist oppression and why Americans should be afraid?! MORE AT ELEVEn!"
  • inactive, on 11/05/2009, -0/+1You could have used the reply button at the bottom of my post. Also, it's not necessary to use a sarcastic TV news slogan after your posts to highlight your angst.

    From your posting record, it's clear that *you* are the insecure one. Life is short, stop the hate.
  • inactive, on 11/04/2009, -0/+1Population is completely irrelevant when you're talking about the natural resources of the land.

    Australia's has vast expanses of iron-ore and natural gas, and China wants it.

  • fragMasterFlash, on 11/04/2009, -1/+2So has GNR started recording their American Communism album yet?
  • PeppermintPig, on 11/04/2009, -2/+3Inflation of the FRN has a detrimental effect on Chinese manufacturers.
  • SoulGrub, on 11/04/2009, -0/+1Where or how did you get 40%? I thought it was far less than that.
  • PandaBearShenyu, on 11/04/2009, -0/+1Anyone that doesn't advertise America ***** YEAH is a shill. News at 11.
  • govtdoesnotwork, on 11/04/2009, -1/+2Why is the Chinese paper-based "money" any more manipulated than the FRN variety of paper-based "money" we use? Is it really that "obvious" there's any REAL difference between the two forms of paper? Because I can't see it, and for me Geithner sounded like a hypocrite.
  • PandaBearShenyu, on 11/05/2009, -0/+1I just love trolling people like you, because it's hilarious to see the type of stuff brainwashed robots can say.
  • orbz, on 11/04/2009, -1/+1That's what 24 hour Wal-Marts are for. Luckily, Christmas is coming!
  • Gregfr, on 11/04/2009, -2/+2The problem with Chinese currency policy is that the US administration is too scared by China to complain about anything they do. They have every reason to be scared. China is a major holder of US debt and the US could be in a pretty bad state if they just chose to stop buying new US debt.
    The first step to be less dependent on China is to stop emitting so much debt. Then this debt will have to be repaid, or inflation could basically wipe it out.
  • Skankingmike, on 11/04/2009, -1/+1I doubt US will ever be cut out since china's owns 40% or more of this country. Australia has a population less than the state of California, they do not have the buying power needed for a country the size of china to make exporting exluslivly important not to say Australia won't see a benifit as Oil becomes more important to China but they have other avenues.

    The US/China relationship is complex and dependent. Ironic considering one claims to be functioning Capitalists vs the other Communist which both claim to be the best and everybody should follow their model.

  • Zique, on 11/04/2009, -1/+1We still have 4 years to go until this depression ends! Ron Paul said this would last 5 years!
  • Gregfr, on 11/04/2009, -1/+1You'd rather be buying underpriced chinese goods than staying at home?
  • 408train, on 11/04/2009, -1/+1economic policies, such as cheap labor?
  • Manberries, on 11/04/2009, -1/+1even if it does no one will be able to run it
  • bmiami69, on 11/04/2009, -1/+1informative yet boring = nerdy
  • Gregfr, on 11/04/2009, -1/+1Well if you read news articles from trusted sources instead of watching some idiot reciting and spinning them, you wouldn't have this problem.
  • zacharytelschow, on 11/04/2009, -1/+1 FREE MARKET BAD, GOVERNMENT GOOD! MORE GOVERNMENT LESS PROBLEMS!

    Use some of the precious little gray matter between your ears. Government created and then is proposing to "solve" the vast majority of the problems. I love how liberal lemmings declare the failure of the free market every time government wrecks something.
  • MatzahMan, on 11/04/2009, -5/+4We need more reform and regulation to make sure that doesn't happen. Wall Street ***** us over and they need to be spanked.
  • webacmgirls, on 11/04/2009, -2/+1Absurd.
    China is a capitalist country, It must rely on the United States.
  • QQQQUUUU, on 11/04/2009, -1/+0I'd reather hear the media tell the truth for once.

    how often do they say, "This might be Dangerous, We will tell you tonight at 11" if it is so dangerous why dont they tell us now, why do we have to watch
  • cheezintern, on 11/04/2009, -5/+4China refuses to let their current (yuan or remimbi) float on the free market. They manipulate it significantly to keep it devalued, which helps their exports. Until their currency is fairly valued by market forces, the US and every other country that now relies on China for its manufactured goods will continued to be ***** in the ass, sans lube. It's a shame all our lawmakers either lack the intelligence to understand that, or lack the political will, to do anything about it.
  • QQQQUUUU, on 11/04/2009, -3/+2why does the media lover to scare people into not spending money

    maybe they like a bad economy so we stay at home and watch the media for more information
  • inactive, on 11/04/2009, -2/+1Does China pay you for being a shill?
  • inactive, on 11/04/2009, -2/+0traitors? I never said that. But if you have read any political articles from them in hte last few years, there is no way you can say my comment in inaccurate.
  • inactive, on 11/04/2009, -7/+5@northmass

    You are an idiot.

    So china is going to become a full autarky, building and consuming its own goods?

    So where does China get its natural resources from? According to you it gets them from itself.

    China doesn't have many natural resources you idiot. They are a manufacturing hub. They pay for foreign natural resources by exporting manufactured goods.

    The only reason they can actually produce and manufacture goods is because other countries feed it natural resources.

    Don't repeat stuff like a monkey if you don't understand it.

    U.S. will be cut out of the loop. Other countries such as Australia (with natural resources) will benefit massively. Australia will feed it natural resources, China will manufacture goods in return and export them.
  • Infowarsdotcom, on 11/04/2009, -7/+4When (not if) China dumps the dollar as a reserve currency, there will be the "last" crisis of the dollar.
  • inactive, on 11/04/2009, -6/+0Boy, Time is desperate for the recession to continue, aren't they?

    I guess when you rot for the worst all the time, it does kind of suck when things start to improve.
  • inactive, on 11/04/2009, -11/+3Yes...except there is no basis for that guess. And that is all it is.

    Gee...how did I know he would be associated with Ron Paul in some way? So he is anotehr one of those idiots who choose to hope forthe worst so that every 20 years or so they can say "see! I told you this was coming!" hopingthat we forgetthat they were wrong the other 19 yeras.

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