From an article I have received in my e-mail:
In about ten years, China has gone from a sleepy old communist country to a modern day economic powerhouse. China has forever changed the landscape of world trade. The United States alone has a trade deficit with China of about $100 billion, and it just keeps growing every day.
You name it, and China makes it. The nation's businesses
produce clothing, toys, computers, Christmas trees, cell phones, regular phones, electronics, appliances, and almost every other conceivable type of good. And they keep making these goods faster and cheaper every year. Can you believe 50% of all the cameras made in the world come from China? No wonder China's economy is expected to grow eight percent again this year, and maybe more. (The Chinese economy has grown an average of eight percent per annum since 1997.)
I have a simple question: What can the Fed's monetary exercises possibly do about this? |
