the visible hand

it is the theory which decides what can be observed – einstein

Bush advocates social saftey net… for China

Posted by ecoshift on September 5, 2007

Reality surges ahead of satire. I wonder if the Chinese appreciate the irony of GW advocating for a social safety net…

Really, you can’t just make this stuff up…. does this mean we should expect a change in IMF restructuring policies…

Bush urges China to spend, spend, spend – Yahoo! News
Wed Sep 5, 3:37 AM ET

BEIJING (AFP) – US President George W. Bush called Wednesday on Chinese consumers to spend more on American products to help reduce China’s surging trade surplus with the United States.

“Certainly I hope that China changes from a saving society to a consuming society,” Bush told reporters ahead of the annual summit of the Asia Pacific Economic Cooperation forum.

“We want the (Chinese) middle class to be comfortable coming into the marketplace, the global marketplace, so that our producers can see the benefits directly with trade with China.”

Most US criticism of the surplus is focused on the value of the currency, said to be kept artificially low, but Bush addressed the high Chinese savings rates instead.

“Right now because of the lack of a (social) safety net, many Chinese save for a rainy day,” Bush said.

“What we want is for the government to provide more of the safety net so they can start buying more US and Australian products.”

Economists have argued that a more expensive Chinese currency would not do much to shrink the overall US deficit as American importers would just move to other low-cost suppliers in different parts of the world.


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