Thursday, September 30, 2010

China: Economic Juggernaut or Overinflated Bubble?

Is China an unstoppable economic juggernaut or an overinflated bubble ready to burst?

That question is one of the most important long-term macro issues facing policymakers, politicians and pundits - as well as anyone else who cares about the global economy.

Right now, China is BOTH an economic juggernaut and a bubble, says Gordon Chang, a Forbes columnist, who sees two major problems with China...

I find this article very surprising not only because of the United States having a stimulus program that involves 5.5% of its GDP but China has a stimulus program that involves 24% of its GDP! I wonder if it is a good thing for China to have such a stimulus package that takes a big chunk of its GDP? Any opinions on this matter?

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