In an earlier post, Rise and Fall of US, i talked about how other countries will ask for their money back which will lead to busting of the consumption boom. Today, China did that in an indirect manner, China Urges New Money Reserve to Replace Dollar.
Earlier also Iraq asked for money back in 2003, but they were forced to live with the current system again. But this time it is the Roaring Tiger of the World. I just want to see, how US will suppress China's voice.
As Keynesian economic theory suggests, War is a good way to get out of worst economic crisis.
If we have a war which looks like an highly improbable scenario right now. The war front is little bit clear except for the role of India and Japan.
AXIS : China, Russia, Pakistan.
ALLIES : US, Britain, France, Australia, Germany, Italy, Canada.
Subscribe to:
Post Comments (Atom)
Here is the response.
ReplyDeletehttp://www.foxbusiness.com/story/markets/industries/government/dear-mr-geithner-heres-answer-currency-questions/
I hope China will not accept this one, especially when they have a well-diversified sovereign wealth fund in place.
Keynes merely suggests that increasing military spending could stimulate the economy ... but the existing economic conditions are not necessarily taken into account while doing so. The social impact of such military reforms tends to also be highly negative, despite any immediate nationalist fervor.
ReplyDelete