Tag Archives: financial crisis

All your Schadenfreude are belong to us?

 

Lecturing others amounts to schadenfreude
Wait. What?

 

An interesting phenomenon seems to be in the air. With the current financial crisis in America and unrest in Britain, it appears that multiple western media outlets cannot resist the temptation to interpret China’s and other countries’ responses in terms of “schadenfreude“. Although not as amusing as accusing the politburo of smoking weed, it certainly has all the qualities that characterize the distinct flavours of garrulous western reporting about China and Asia in general.
In response to the crises in Washington, Xinhua, in a much cited phrase (One that the international media has gone completely gaga over), called upon the US to “cure its addiction to debt” . This was interpreted by The Economist as schadenfreude, claiming that “regional celebrations” have erupted in Asia over the debt crisis. Continue reading All your Schadenfreude are belong to us?

Michael Spence on China, U.S., and growth of the developing vs. developed economies in coming decades

the Economist recently interviewed Michael Spence (Professor of Economics, Stern School of Business, New York University, and Senior Fellow, the Hoover Institution, Stanford University), and I thought his comments about China, the U.S., and the growth dynamics between the developing countries and the developed countries were rather interesting.

He talks about economics without the politics. It’s almost “weird” to find this type of discussion in America nowadays. He said that China is laying the ground work for transitioning into a more advanced economy over the next decade. He also said that the developing countries will maintain their growth even if the developed countries continue to limp along; the developing economies are no longer as dependent on the developed countries as was a decade ago. Elsewhere, I’ve read him articulating the U.S. has been consuming more than it produces for about a decade now and the U.S. will have to settle into a lower consumption “norm” when it re-emerges.
Continue reading Michael Spence on China, U.S., and growth of the developing vs. developed economies in coming decades

Zhang Monan (China Daily): “Towards new financial order”

Zhang Monan is economics researcher with China’s State Information Center and frequently appears on China Daily with her “big picture” takes on the global financial system. She is worthwhile following if you wish to understand how China sees the jostling of control between the now currently dominant developed countries and the emerging developing countries for a fairer share of wealth. In her 2010-07-05 article, “Towards new financial order,” she summarizes the inevitable competition (or “cooperatition” if you will) from developing countries in reshaping our worlds financial institutions. Below are snippets from her article:
Continue reading Zhang Monan (China Daily): “Towards new financial order”

Psst … is China a currency manipulator and cause of the world financial crisis?

According to an op-ed by Paul Krugman in the NY Times today, China is not only a currency manipulator, but also a cause of the world financial crisis. I usually have some respect for Mr. Krugman, so I’ll try to take his op-ed seriously. Continue reading Psst … is China a currency manipulator and cause of the world financial crisis?

Chimerica: James Fallows & Niall Ferguson

This is the full session between Niall Ferguson and James Fallows at the recently held Aspen Ideas Festival. Allen had posted excepts and we promised you the complete discussion as soon as it became available. Niall Ferguson had coined the term “Chimerica” to describe the symbiotic relationship between the economies of China and the United States. He currently sees this relationship as being in jeopardy, while James Fallows feels the relationship is far stronger the most realize. This video is slightly over 75 minutes.

Continue reading Chimerica: James Fallows & Niall Ferguson

A Chinese view of governance and the financial crisis: An interview with ICBC's chairman

In response to Steve’ question on what is the difference between Chinese version of capitalism and American version of capitalism, I think there are many.  The most important, I think, is the respective role of government, market in running / in governing the economy.  Another important aspect, I think, is the goal of economic prosperity.  China takes a more “holistic,” perhaps results-oriented  view to economic prosperity whereas America tend to take (historically at least) a more “individualistic,” equal-opportunity point of view. Continue reading A Chinese view of governance and the financial crisis: An interview with ICBC's chairman

Something to chuckle about #2

Apparently, at least one of the columnists at the Washington Post reads this blog. Sebastian Mallaby, a veteran from the Economist and contributor to Foreign Affairs, Foreign Policy, Prospect, the National Interest, the New York Times, Policy Review, Slate and the New Republic, and specializing in globalization, trade, investment trends, international development and economic policy, has apparently taken my advice for Tim Butcher to heart. Mr. Mallaby decided to follow up with Tim Geithner’s recent and much discussed comment about China’s  “manipulation of currency” and penned a piece that’s not safe for your computer if you are drinking coffee while reading it.
Continue reading Something to chuckle about #2

(Letter from perspectivehere) Michael Spence, Nobel Laureate 2001 in Economics, on China’s Economic Management

In a Q & A with Michael Spence, Nobel Laureate in Economics 2001, on the U.S. economic crisis on Squawk Box at CNBC, Spence makes some notable comments on China’s management of its economy and its responsible actions on the global economic stage. Continue reading (Letter from perspectivehere) Michael Spence, Nobel Laureate 2001 in Economics, on China’s Economic Management

Lessons for China from the world financial crisis

With Iceland close to bankruptcy and the world’s financial system going to hell, China stands somewhat apart in its relative isolation. Asia Times has an intriguing article on this:

“In the past, China has been blamed for the low-degree of internationalization of its financial industries. Now it seems we are profiting from this ‘fault’,” the commentary said.

Many Chinese economists share this view. “Our not-fully-open financial system and not-fully-convertible currency saved China from being rattled during the 1997 Asian Financial Crisis. And now again this seems to be a strong dam to protect us against the current financial tsunami,” an economics researcher with the Chinese Academy of Social Sciences (CASS) said.

“It is evident that the financial industries cannot become entirely market oriented. The semi-market, semi-government-control system may prove a better [system]. The problem in China is that the part of government control is too big and thus reforms are needed to deregulate.”

In early September, Steven N S Cheung, a Hong Kong-born Chinese-American economist living in exile in China, being wanted by the US government for alleged tax evasion, claimed that China “has formed the best system in the history of human kind”.

Continue reading Lessons for China from the world financial crisis