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To: sammy™ -_- who wrote (753)7/25/2006 10:39:51 PM
From: sammy™ -_-  Read Replies (1) | Respond to of 1939
 
The central bank, not the consumer, has always been and always will be the engine of inflation. Consumer is not the source of inflation. Does that mean the consumer is out of the picture?

Banks can print but they can not force consumers to either borrow or spend. If bankruptcies expand faster than borrowing, the net of money supply and credit will contract. That is deflation.

China is the world's largest developing country and the U.S. is the largest developed country, thus their economies are comlementary and it's imperative that they cooperate to promote global economic development.