http://alephblog.com/2008/04/12/the-problem-with-hoarding-or-dont-play-a-game-with-someone-who-can-change-the-rules/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Mon, 13 Feb 2012 17:14:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://alephblog.com/2008/04/12/the-problem-with-hoarding-or-dont-play-a-game-with-someone-who-can-change-the-rules/comment-page-1/#comment-17438 anonymous Sun, 13 Apr 2008 03:50:58 +0000 http://alephblog.com/?p=644#comment-17438 As long as China's economy is growing annually by 9% or so, they don't want to rock the boat. Recall that Japan's economy was growing by almost that much until the oil crisis in 1973-74; but after that, never again at that lofty rate. When the current unsustainable situation comes apart, we will find ourselves in a new era when the dust settles, probably with far less public support for trade and globalization and substantially lower rates of growth. The Chinese government's legitimacy in the eye of its people rests almost entirely in its ability to deliver prosperity; they need the high-growth status quo to continue as long as humanly possible, and maybe just a bit longer. As long as China’s economy is growing annually by 9% or so, they don’t want to rock the boat. Recall that Japan’s economy was growing by almost that much until the oil crisis in 1973-74; but after that, never again at that lofty rate. When the current unsustainable situation comes apart, we will find ourselves in a new era when the dust settles, probably with far less public support for trade and globalization and substantially lower rates of growth. The Chinese government’s legitimacy in the eye of its people rests almost entirely in its ability to deliver prosperity; they need the high-growth status quo to continue as long as humanly possible, and maybe just a bit longer.

]]> http://alephblog.com/2008/04/12/the-problem-with-hoarding-or-dont-play-a-game-with-someone-who-can-change-the-rules/comment-page-1/#comment-17434 amccabe Sat, 12 Apr 2008 14:05:21 +0000 http://alephblog.com/?p=644#comment-17434 Or a move to the Euro as a reserve currency? Or a move to the Euro as a reserve currency?

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