Chimerica's monetary management

[Skybird]

I waited for this article being translated by them, it's short, plain, and right on.

http://www.spiegel.de/international/world/0,1518,druck-678026,00.html


China now sells significantly more goods in Europe than it does in America. Rarely has a government used the instruments of state monetary policy in such a calculated way. Obama is complaining, China keeps on growing and we're all confused.

The economics textbooks never imagined a planned economy that was also run so cleverly. The world of planned economies is "a completely paralyzed, artificially distorted, pseudo-order incapable of reaction," Ludwig Erhard, the former German chancellor and economy minister widely credited with engineering Germany's post-war economic miracle, once said. It would "collapse like a pack of cards."

If he were alive today, Erhard would definitely change his mind, given Asia's successes. That's because China has a plan, and America apparently doesn't.

[krashkart]

I keep wondering how our country is supposed to break even on its debts with even more debt. A close friend once told me that insanity is "doing the same thing over and over again expecting a positive outcome, but getting the same negative results every time".

Maybe Obama should consult with Richard Branson. :up:

[Skybird]

I keep wondering how our country is supposed to break even on its debts with even more debt. A close friend once told me that insanity is "doing the same thing over and over again expecting a positive outcome, but getting the same negative results every time".


Yes, it is also a social-psychologic issue, named "the dilemma of fearing to lose already made investements". It means that people continue doing the wrong things even if they are aware they are in trouble, becasue they argue that they already have made so many investements into the old ways that these would be lost if now they start chnaging them, and doing things differently. Of course that is irrational, because if you do the wrong things more intense and more often, doing so does not turn them into something right. but our whole economy mantry is basing on that assumption. You can see it in the fact that what has brought us into the mess - mad consummation, economic growth that is being assumed to ever climb, without limits, and by these two things increasing our ressources-related and environmental problems accordingly - still is assumed to be the remedy and preconditions for economic healing. It's like trying to heal a wound by oushing the knife causing it deeper into thr wound.

In the end the chinese grow currently for the same reason Germany did after WWII: everything was in rubble, everything was reset to zero, there was massive room and need for growth. the more grown up china becomes, the more it's growth will slow down, and finally climax sometime in the future.

There are no such things like constant, unlimited linear growth - that would be cancer. Things move in circles. everything created new, already holds the cause of its own destruction in it's heart. every pole appearing on the stage of existence, by it'S mere existence already defines it's counter-pole that before was not there.