Granny checkin' her Chinese rickshaw stocks dat Chinaman sold her...
Noted US Economist Warns of Future Economic Woes in China
November 19, 2016 - The renowned American economist Paul Krugman says "China in 2016 looks a lot like Japan in 1989" — right before Tokyo headed into a prolonged period of financial crisis known as the "lost decade."
Noted US Economist Warns of Future Economic Woes in China
November 19, 2016 - The renowned American economist Paul Krugman says "China in 2016 looks a lot like Japan in 1989" — right before Tokyo headed into a prolonged period of financial crisis known as the "lost decade."
Krugman says it is not China's economic growth and dominance in the world economy that worries him. Rather, it is the likelihood of a coming economic downturn in China, and its enormous impact on the global economy, that concerns him. An expert on international trade, Krugman received the Nobel Memorial Prize in Economic Sciences eight years ago. He spoke at the Peterson Institute for International Economics in Washington on Thursday, and in a brief interview later with VOA. The biggest problem, he said, is what China will do in the event of an economic collapse, and what problems that would pose for the rest of the world.
China is 'not too big to fail'
Asked whether the international community would come to China's rescue in a manner similar to the bank bailout program the U.S. government launched following the financial crisis of 2007-2008, Krugman shook his head: "No, even with the best will in the world, China is just too big — not too big to fail, but too big to save." He quickly added: "Who's going to do this? The Trump administration in America? The European Union, which is busy tearing itself apart? No, it's not going to be a global rescue."
U.S. economist and Nobel laureate Paul Krugman reacts to questions from journalists after a meeting with Japanese Prime Minister Shinzo Abe in Tokyo, March 22, 2016. Krugman spoke Thursday at the Peterson Institute for International Economics in Washington and to VOA.
The political consequences of economic setbacks also are a major concern, Krugman said: "China is big enough to have a pretty big knock-on effect on the rest of the world, but mostly, the biggest impact is in Asia. But I would start to worry about political economy. What happens to China's internal stability? [These are] Not happy thoughts."
A number of analysts have argued, and human rights and democracy advocates hope, that an economic downturn in China could bring about social and political change that constitutes regime change — even if that regime change is engineered by the current government or members of the current government. Krugman said he thought many outcomes were possible, including the Beijing government turning again to violent means to crack down on protest and dissent.
China is 'Japan without a safety net'
