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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (37064)	9/14/2005 12:07:25 AM
From: bond_bubble	Read Replies (2) \| Respond to of 116555

When the recession starts, printing money makes the recession even worse. That is why, the govt will always try to use savings so that the recession is soothed. Hence, if it is Chinese govt, it will lower rates and try to preserve as much savings as possible so that it can spend the savings to come out of recession. That is why, they will definetely pull the rug once they know that US is not going to buy anymore stuff from China as US goes into recession. They asians will sell the bonds frantically when the US hits recession. This did not happen in 2000 because, US was buying stuff from China using house as ATM. There are no more ATMs and hence US is not going to import much from China and there is no need for china to park its savings in US after that!!