Friday, September 23, 2011

Why China Can't and Won't Save the World

(Reuters) - The most China can realistically do for the struggling global economy is to ensure its own growth holds up, and that won't be nearly enough to lift the world.
Visions of China putting its $3.2 trillion in reserves to work by launching another government spending spree or buying up European bonds ignore the political and economic reality that China, like any other country, puts its own needs first.
Right now, China's economy doesn't need more stimulus and its leaders are wary of making bad bets on European debt, which means if conditions worsen in the United States or Europe, China would respond only if and when trouble shows up at home.

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