Quote Originally Posted by Dr.Hashman

As far as China having alot of money, hell, they can't even use monetary policy to control their own economy. Their economy is like a juggernaut, it is expanding so fast it can't be stopped without a Greenspan or Bernanke, and we have all of em in the USA. How about China tries a different play in their contractions (tight) policy handbook? God I hate China's economy...

I'm also learning Chinese right now (mandarin), that it hard to learn with Rosetta Stone.

Great point Dr. Hash. China really is walking the tighrope with their economy. It's a time bomb waiting to go off but nobody has a clock to tell them when. I don't even know how they could control it at this point. The biggest tool the Fed has to control our economy is interest rates but China's economy really isn't that tied to the cost of borrowing. My brother-in-law just bought a new car with 100% cash, my mother and father-in-law just bought a new house with 100% cash. That's pretty much the way it's done there. Even the way a large corporation would get a LOC(Letter of Credit) for purchasing goods from abroad is different from how it's done here. The banks being more of an intermediary than actually loaning the money.

What do you think Dr. Hash? How could they do it? The only thing I can think of would be to have a more realistic valuation of the Yuan which would raise costs for other countries, making cheap Chinese goods not so cheap anymore. But how do you tell someone to kill the goose that's laying the golden eggs??