Chillin' out till it needs to be funded
How “Pinky Journalism” hates the rise of China
The immature off the cuff reaction to China’s monthly trade figures is a despairing attempt by the otherwise business like FT and WSJ to gauge and fall in with American Congressional whimsies at best. US’s emotional reaction to China also may not reach the black and white proportions sought by the FT report on the “dwindling surplus” in August. China meanwhile reported $170 bln in exports and $155 bln in imports for a largish $15 bln surplus, lower statistically on year to year comparison but rounding off the quarter with $64 bln in surplus
The surplus did narrow because of the G7 recession taking hold in Europe, but even is Europe Chinese exports grew but by a lower 9.8%
I find it unfathomable that you could be considered a financial journalist or commentator with such a bucketed approach carrying on from the nineties when even the Congress has risen to a different level in its screaming matches to irrationally defy any electorate expectations ( pun? really? no with all due respect to Mr Sargent and Sims) Of course one trusts like the discontinued grade school whims in Asia reporting, this brand of journalism on China will also be detachedly given up by those that strive to powers at Financial Times
Will China’s Surplus Economics work?
China’s fast deceleration domestically has China baiters sitting up to watch in a tizzy but likely to leave them with stringbeans for Fengshui in their own verandahs as China bottomed out in domestic manufacturing at July itself and its Exports deceleration bring into focus its domestic demand economics.
The enfant terrible of Global Free market Economics however may yet hope for a breakthrough on the domestic front as it has a totalitarian system more in control of input and output parameters of its Economy than the statistics with which it does lie so ordinately. Its performance also puts India at shame as neighbours battling the same giants of inflation with a much better consumption and domestic demand situation
A fluctuating surplus will infact get only lower in size if eventually China reverts to deficit economics for faster domestic growth, thus erasing the question of Yuan being under priced as too old and underdeserving even of a congressional response or if need be to be vetoed at the White house
Also the European recession will necessarily matter in the quantum of global FDI and exports incl Germany’s own exports but likely to remain unimportant statistics for the global economy, Europe sitting in the center licking its chops from its own over ages