Dangers of an Overheated China (unsustainable production by political imperative)
November 29, 2009 ECONOMIC VIEW Dangers of an Overheated China By TYLER COWEN 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. Several hundred million Chinese peasants have moved from the countryside to the cities over the last 30 years, in one of the largest, most rapid migrations in...
Original Article: Forum: News/Activism
Tags: Chinese Peasants, Countryside, Economic View, Economy China, Global American, Global Economy, Heart, Hundred Million, Likely Culprit, Migrations, Obama, Overcapacity, Private Sector, Public Sector, Spending Power, Symbiotic Relationship, Trip To China, Tyler Cowen, X92