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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (79348)	9/9/2011 12:09:59 PM
From: elmatador	2 Recommendations Read Replies (1) \| Respond to of 217542

Savings Glut: In a common telling of the pre-crisis world, emerging markets sought large surpluses in part because they were the flip-side of export-oriented growth (a proven path to development) and in part to insure against the financial crises that battered industrialising countries in the late 1990s. Never again would emerging economies be held prisoner by panicky lenders in developed nations. But those surpluses gave way to a "global savings glut"—a giant pool of credit that was recycled to developed nations to preserve consumption there, and which ultimately fueled dangerous, leveraged financial activity. Too much easy money caused the subprime. See Chimerica: First coined by historian Niall Ferguson and economist Moritz Schularick in late 2006, they argue that saving by the Chinese and overspending by Americans led to an incredible period of wealth creation that contributed to the global financial crisis of 2008–2009 What “Chimerica” Hath Wrought the-american-interest.com Ferguson describes Chimerica as one economy which "accounts for around 13 percent of the world’s land surface, a quarter of its population, about a third of its gross domestic product, and somewhere over half of the global economic growth of the past six years." [8] He suggests Chimerica could end if China were to decouple from the United States bringing with it a shift in global power and allowing China "to explore other spheres of global influence, from the Shanghai Cooperation Organization, of which Russia is also a member, to its own informal nascent empire in commodity-rich Africa." [9] The accumulation of American debt which has been estimated at over $800 billion suggests the two nations are intrinsically linked; the economic symbiosis prevalent between the two suggests the separation would harm both countries and be disastrous for the global economy.[ citation needed] The idea of Chimerica features prominently in Ferguson's 2008 book and adapted television documentary The Ascent of Money which reviews the history of money, credit, and banking. en.wikipedia.org