Chinese economists run circular flows around Americans

Look who’s speaking loudly and swinging the big stick!

According to the Wall Street Journal, just days after US Treasury secretary Timothy Geithner accused China of manipulating its currency for economic gain, the Chinese premier described the current financial crisis as “attributable to inappropriate macroeconomic policies of some economies and their unsustainable model of development characterized by prolonged low savings and high consumption; excessive expansion of financial institutions in blind pursuit of profit…

Together with Mr. Wen Jiabao at the World Economic Forum in Davos, Switzerland, was Russian prime minister Vladimir Putin who said, “Excessive dependence on a single reserve currency is dangerous for the global economy.”

Put more directly, I’d venture that any dependence on any fiat currency is dangerous for anyone who does so. As for China, c’mon Jiabao…

US economic policy is not wrong; the US even having policy that interferes with market economics – other than strict numismatics – is what’s wrong. Say what you want about communist/ex-communist Asia, and we’re obviously overlooking MANY flaws in the Chinese system (Geithner’s probably right for one, but that’s the pot calling the kettle black.)  At least their politicians grow up with a basic understanding of economics.

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