Posted by: Tony Shannon | August 1, 2011

World Economics; Out of Balance

As the world economic order continues to shudder and lurch from one drama to another, there appears a clear pattern emerging.

There are spenders and savers and so as the West mounts up a large debt, China is increasingly serving that debt… to encourage the West to spend money on Chinese products.
(In many ways, who can blame the Chinese for serving the Wests needs and wants.)

Yet this international trade deficit is moving further out of balance, as David McWilliams intelligently explores in his recent blog article, An Unbalanced Economic World which is well worth a read.

David points out that the current complex system of trade imports and exports is perpetuating regular crises..ie. chaos. As ever to move away from chaos and to bring order to a complex world, leadership is needed and neither Europe, the US or China are providing that effectively at the moment.

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