They need China more than the other way around.
"(The) underpinnings of our economy and financial system are so precarious that the un-abating risks of collapse dwarf all other factors."
That is what I have been saying over and over and over again on these pages.......
But the Fed, to its credit, has so far prevented the US from following Europe into recession, and the stock market is hitting pre-crisis level highs.
And I feel like the boy who cried wolf (As I felt in 2007).
Regular readers will know I am less sanguine about China's progress.
He wonders why the American economy's job growth has slowed down- (perhaps b/c you shipped the jobs "en masse" abroad, see my greece - germany post of today also).
"What is striking, and frightening, is the extent to which, at least in the U.S.-China trade relationship, the knee-jerk, populist fears intellectuals tend to deride actually turned out to be true." Cold comfort for the unemployed. Meanwhile the economics profession continues to cheerlead trade librealism and ignore the need to compensate those hurt by trade in order to retain effiiciency. I want to see my science actually fight/lobby/extohl for compensation measures, the same way it does for "free markets" and the same way it shills for the finance industry; then we might be once again seen as relevant.
"I’ve been fascinated in recent weeks by the rather intense gap between the unrestrained economic optimism of Wall Street and the actual data." Here is a picture that sums up the reality of OECD economic performance.
We see how German trade financing facilitated Greek excesses.