One nice things about writing a blog is that I don’t need to be topical. Not only can I write worriedly about rising contingent debt levels three or four years before they become obvious, but I can also revisit a controversy that took place March involving Paul Krugman and Stephen Roach. I revisit this old controversy …
Read More…Archive for April, 2010
Chinese savings and the wealth effect
Sorry to regular readers for my blog’s being out of commission for much of the past week, but apparently it has created too much traffic for the host, so without giving me any warning they pulled the site. We came up with a temporary solution and will move to something more permanent soon. Since I …
Read More…Who will pay for China’s bad loans?
Since this is a very long post, it may make sense first to provide a quick summary of what I am going to argue. As I have discussed often in earlier posts, pessimists are starting to worry about excessive debt levels in China, about which they are very right to worry, and many are predicting …
Read More…How will US savings rate rise if you don’t penalize consumption?
There seems to be a thaw in the currency war. President Obama and President Hu had a long telephone conversation today and my guess is that the Treasury will hold off on naming China a currency manipulator in two weeks. I hate to be a pessimist, but this might be very temporary. Unless the US …
Read More…