http://www.zerohedge.com/article/how-china-just-implemented-stealth-bailout-bigger-one-and-half-tarps
China is furiously propping up its economy with TARP-like bailouts also, but unlike the US government, the Chinese government is encouraging its citizens to purchase gold and silver to protect their purchasing power against inflation. In contrast, the US government (and most developed countries) encourage their citizens to increase consumption, i.e. decrease savings, in a futile attempt to stimulate their respective economies. In normal economic cycles, consumerism works, but western countries have structural debt problems, which is why their economies are still stalled 4 years later. The Keynesian end game is nigh.
Tuesday, June 7, 2011
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