Who Caused The 2008 Economic Crisis? China.August 29, 2012 12:52 pm
We spotted this today:
“Mees, author of three books and contributor for Foreign Policy magazine, says it was the “loose” monetary policy of the Federal Reserve at the beginning of the decade which sparked a refinancing boom in the U.S. in 2003 and 2004 and a growth in personal spending. This U.S. spending binge fuelled economic growth in China and in turn boosted total savings in that country.
The study, which compared financial market responses to U.S., Chinese and German quarterly GDP from 2006 through 2009, shows that the Chinese have been saving more than half of their GDP during that time. Those savings were heavily skewed towards fixed income assets like government bonds and depressed interest rates worldwide from 2004 on.”
Statistics Source: Yahoo Finance