主题：del -- MRandson

Agree. No need to rebalance the trade in a short period of time, but the U.S. will not be able to absorb more overcapacity in China and China is holding lots of greenbacks in the form of treasury notes. If the current situation continues through the next 10 years, American default is inevitable and China does not benefit any more under the current system. When overcapacity has no end consumers, China will experience what America did in 1929.

What I am proposing is that China SHOULD THINK ABOUT changing the current global financial system. Elites SHOULD THINK LONG TERM FOR THE NATION AND WORLD. Childish complaint does not fix problems.

Either China and the whole world can switch to gold-based system so that trade deficit could not continue forever for one nation or we add something like SDR so that domestic monetary policies will be separate from global financial payments, thus Fed can not damage other nations while it stimulates its own economy (and trade deficit can still accumulate). In the meantime, China should seriously consider domestic FDR -styled reform so that domestic Chinese can really enjoy the MATERIAL benefits from economic growth rather than just accumulate more useless paper money.

I was back in Shanghai in 2008. I have to admit that most average Joes did not benefit from last 10year's golden age in China at all.

WE NEED TO THINK ABOUT practical solutions--finger pointing will not solve the dilemma.

I never take Obama seriously. He is a puppet for sure. He is just doing what his masters are asking him to do. I like Republicans more than Demos. Demos are too hypocritical.

My worry is that currency war might lead to trade war, trade war brings everybody into big deep depression and then we will see new dictators and nationalism.

In the end, we will see deja vu of 1930s and WWII and final destruction of this earth for every human being.

Do not assume the history does not repeat itself. To be frank, ever since the world switches to Bretton Wood II in 1973, the financial system became more and more unstable for the world (frequency of financial crisis).

The 2007 crisis is somewhat the deja vu of 1980s' S&L crisis. The pity is that most Americans already had vague memory of that crisis.