In the final analysis, the Chinese are just too big and too fast for the rest of the world. We are all also addicted to economic growth. The Chinese were able and more than willing to feed that addiction. They were also willing to take US IOUs.
Ideally the US should export as much as she imports from China but that was not possible.
Now the problem is coming home to roost and it is too scary to contemplate.
People will increasingly lose confidence in the USD and having nowhere else to go, will chase other assets.
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