Forbes (February 10, 2014)
“Beijing is becoming more dependent on the U.S. and the rest of the world for its strength and prosperity.” Though it may be the largest holder of U.S. Treasuries, this is not a sign of strength. “The idea that a government gains strength by piling up dollars or other foreign currencies is a mercantilist holdover from the 16th to 18th centuries, when France, Spain and others thought amassing gold and silver was how a country became wealthy. Trade, not hoarding, makes for a powerful economy.”
Tags: Beijing, China, Currencies, Dependent, Dollars, Economy, France, Gold, Government, Hoarding, Mercantilist, Prosperity, Silver, Spain, Strength, Trade, U.S. Treasuries, Wealth
Euromoney (August Issue)
“The value of mergers and acquisitions by Japanese companies of those in southeast Asia has reached $8.2 billion over this year to date, according to Dealogic, further demonstrating Japan’s relative strength on a regional and global basis. That makes Japan the highest single-country bidder for any southeast Asian companies.”
Tags: Global, Highest bidder, Japan, M&A, Southeast Asia, Strength
Economist (May 26)
“Despite a recent slowdown, the world’s second-biggest economy is more resilient than its critics think.” China is not dependent on foreign borrowing, enjoys a high saving rate (51% of GDP), has highly liquid banks, and very low central government debt (25% of GDP). “China plainly has enough fiscal space to recapitalise any bank threatened with insolvency. That space also gives the government room to stimulate growth again, should exports to Europe fall off a cliff.”
