Doorways, not doors.
by, 20th-June-2008 at 07:46 PM (722 Views)
...a dinner withChinese Vice Premier Wang Qishan
We will be hearing a lot more from Wang now that he has been introduced. Between him and Paulson and all the deals that had been announced that worth tens of billion, what is not clearly reported is this - many are taking the view that Bernanke and Paulson are running out of option to arrest the economic problem facing the USA, that is, the threat of stagflation. Have they ever considered the possibility of the help coming from the Chinese? Yes, how about a Chinese bailing out? With US$1.7 trillion surplus in their coffer, the Chinese are well positioned to extend a helping hand here. If that's not enough, how about adding another trillion from the Middle East Oil cartel?In contrast to Chinese isolationism, Mr. Qishan noted that whenever China has been open, it has prospered. More than 1,000 years ago, China was an open and active trader. Then the country closed up and became internally focused. At the end of that period, they discovered that the world had passed them by. By opening up, the country's leaders realized that they could benefit from the advances the world had made.
At this point while the news on the US financial front is bleak, but, ruling them out... I think, is probably not a good idea.