I read with unbelief this piece of advice in the NY times in an article about what China needs to do in the face of a global slump in demand for her products:
“Yet to navigate the crisis, many analysts say, China will need to recalibrate its economic model, stoke domestic investment with heavy government spending and promote policies to increase consumer demand in a nation known for high savings rates.”
I thought that was a sure fire way to destroy your economy and end up in a huge financial mess that requires trillions in government handouts. BUT I guess I was wrong. There first step will be figuring out how to provide the country with enough space for a billion people to have garages to store all the junk in that they need to buy to save the country. At least someone they talked to had a little more sense: “China trying to step into the breach by handing out credit cards to 800 million peasants would be a disaster just a few years down the road.” Someone should tell that to Capital One.