Comments on: Weekend links: Stuff worth a look http://www.deeshaa.org/2009/06/27/weekend-links-stuff-worth-a-look/ Mon, 13 Feb 2012 05:41:09 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: viveksh http://www.deeshaa.org/2009/06/27/weekend-links-stuff-worth-a-look/comment-page-1/#comment-143905 viveksh Sat, 27 Jun 2009 17:20:52 +0000 http://www.deeshaa.org/?p=2625#comment-143905 Note that adjusting down by $365B / year (the trade surplus of $1B / day cited above) is not a lot for the US economy. The savings rate in the US was 0 and has shot up to 6.7% this year. That percentage of the GDP is ~ $1T / year. "Chinese leaders have deliberately held down living standards for their own people" - that is the real problem and it amounts to keeping the yuan low against the dollar. The implications of sudden changes are way larger on China that on US contrary to popular opinion. Note that adjusting down by $365B / year (the trade surplus of $1B / day cited above) is not a lot for the US economy. The savings rate in the US was 0 and has shot up to 6.7% this year. That percentage of the GDP is ~ $1T / year.

“Chinese leaders have deliberately held down living standards for their own people” – that is the real problem and it amounts to keeping the yuan low against the dollar. The implications of sudden changes are way larger on China that on US contrary to popular opinion.

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