Xie Guozhong: Sinking Of Global Economic Ships

In the Chinese lunar year of dragon,

The governments of all major countries in the world have been treating this crisis with "headache, pain and pain" instead of looking for and solving the root cause of the crisis.

Pay attention to the regional market. Indeed, some places are better off, such as the US now.

Because of the debt crisis in Europe and the credit problem started by BRICs, funds are flowing into the US dollar area.

The influx of international capital has made Americans feel a lot more realistic and may even maintain a virtuous cycle of mini version.

However, the chronic illness of the US economy remains unchanged.

In mid December 2011,

Worse still, the leaders of the eurozone have become more and more confused.

The global economic crisis has made us see clearly the true colors of most of the leading countries.

The economic boom of the twenty years before the crisis has pushed these people into the position of leaders in the world today, and now they do not even have the ability to accept the reality of their country's economic collapse.

The US government has actually gone bankrupt, and the deficit has reached 9% of GDP. The problem is similar to that of Italy. But some experts will tell you: This is just bullshit, because the Fed wants to help the US government pay its debts.

The current market does believe this, and the yield on US Treasuries is so low.

However, the irresponsible act of printing money does not create wealth, but is just plundering the holder of the currency.

The potential victims did not try to abandon the dollar, just because there is no better option at present.

Whether Obama, the incumbent president of the United States or Republican rival Mitter Romney, is not eager to solve the US debt and deficit problem.

The US is likely to ignore this problem until the US Treasury market collapses.

The western world can not honestly face reality: they are losing competitiveness, and must take this as a starting point to adjust their way of life.

As productivity increases in emerging countries, goods bought by the West will become more expensive and the goods they sell will become cheaper.

This trend may last for decades.

The only solution is to reduce consumption and increase working hours.

China has enough jobs and productivity, but its consumption capacity is lacking.

In the past, China had always wanted to rely on increased investment to ensure the growth of consumption, but it only wasted more and more money on the "face project" and aggravated social corruption day by day.

With the decline of exports and

The ships of the global economy are still sinking.

The news we heard was that the government emptied the water at one or two locations, and the ship as a whole continued to sink.

When can leaders take substantive actions? Do we wait until the water reaches our waist? Our shoulders or our noses? We can only pray for the best outcome.