The old Ponzi Scheme of China lending to the US to buy its goods is back in another form, this time even better for the Chinese. How good it is for Yankees and the DD depends on how well India does; on that the jury is out and will be out for years.
Simply put India is buying a ton of stuff from China to modernize its economy. Since we runa a trade deficit the money has to come from somewhere. Foreign investment, invisibles and remittances make up the shortfall.
Why can't we Desi's, clever as we are supposed to be, come up with a scheme where we can sell stuff to other countries paid for by third countries?
Sunday, September 4, 2011
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