China has seen plenty of downgrade in the start of this year. Well the china being the established market, it is going to be tough for the us to maintain its top position keeping in mind various events like fed rate, stock market turmoil and oil prices in the global market, china being the highest in the gold reserves, the china stock market crash has bring china to a halt only for a little while in the start of 2016, but the china is speeding up with applying negative interest rates. Well the US vs. china market is gonna be a big thing to see whereas Germany with the refugee problem is gonna suffer with civil war on a large scale. Now is the condition to wait and watch as this big economies hit a turmoil.
Source: China Stock Market Crash in 2016
Not enough attention is applied to the definition of saving: the time period, law of the land. Saving in the 50's is entirely different from saving today. Also wildly different are the effects of saving.
china has its own issues including a desperate need to maintain social stability. decline in growth is going to mean mass migration again. only this time the countryside will not be able to sustain the migrants.
gold means nothing. china is involved in both economic warfare against the u.s. and is profoundly tied to the u.s. there is no market anywhere, especially if the eu unravels, that rivals the u.s. for china to sell goods.
this does not mean that all is hunky-dory, far from it. it does mean that attempts to view macroeconomics through one lens must fail. ignoring social, psychological, environmental and foreign (projected domestic) policy inputs will result in skewed theories and hypotheses.
Uncommon Cents Wrote: China's problem, imo, is related to their handling of the 2008 global econ crisis. As assets dwindled, the Chinese public sector was encouraged to borrow and that is in fact what happened. The problem is that private sector borrowing has several downsides, for one, people have a very finite limit to the amount they can borrow and if borrowing and the productivity it creates does not result in in a proportional amount of wage growth, then personal debt relative to wages will rise. The result is decreased consumption and decreases in demand. Even if borrowing levels off (as opposed to declining) small decreases in consumption will be realized, again, unless there is a proportional increase in wages.IMO, China is using economics to it's own benifit, it's not "waging a war" in that it's intention is primary the harm of other nations, but rather the increase in it's own power, influence and standard of living. I can't say I blame China's policies one bit. We also have the power to manipulate our own destiny but the US voter isn't educated enough on fiscal and monetary policy. Too many people believe that the US economy is run like a household. They believe that the US government can go bankrupt and one day be unable to pay it's debts. People don't understand the affect of the trade deficit or popular (and ruinous) notions like a "balanced budget".....Of course, the reason I believe that people are so uneducated about economics that the ignorance leads to wide swings in our economy that benifit those with the most money. It's not government that is the problem, it is the influence of money on our government that is the problem.
I don't know of any other phrase to use to describe deliberate policies that have as their goal economic dominance.
Do I blame China for their policies? No. They are simply engaged in the same aims that every other power seeking the heights has engaged in. The problem lies in whether or not they will fall into the neoclassical trap including free trade. So far they have not yet. But time will tell.