World Must 'Get House in Order', Not Rely on China, Says China's Premier

http://www.bloomberg.com/news/2011-09-14/china-s-wen-says-world-must-cut-debt-and-deficits-increase-jobs.html

Coach wrote:http://www.bloomberg.com/news/2011-09-14/china-s-wen-says-world-must-cut-debt-and-deficits-increase-jobs.html

Crickey when the the country that sells the west cheap stuff tells us to srew the nut you know the econamy aint recovering anytime soon.

The Chinese government knows perfectly well that if the European and North American markets for their cheap commodities continues to decline, as it has been for the past four years, China itself will be facing serious consequences. Therefore, despite the rhetoric Premier Jiabao used at the World Economic Forum, you can expect China to continue buying government bonds from the largest Western consumer nations.

I found Jiabao's declaration that the West must take drastic action to solve its "sovereign debt crisis" particularly humorous, considering the fact that taking measures to reduce the deficit at this point would merely cause further unemployment and, thus, reduce aggregate demand—which, of course, would negatively affect China. His advice is also completely hypocritical, since China has been implementing massive Keynesian stimulus projects since the recession began.

On a side note, it's absolutely pathetic for member of a communist party to be offering advice which conforms with neoliberal orthodoxy. Apparently, aside from annihilating all remnants of socialism in their country, the Communist Party of China no longer requires its members to even be vaguely familiar with Marxian economics. (Deng Xiaoping would be proud.)