Timmy elsewhere

At the ASI.

An implication of why the Chinese save so much.

3 thoughts on “Timmy elsewhere”

  1. Yes Luke.
    That people in the third world have to save, because they have a one child policy and no welfare net, is obvious.
    That they save it in $ is normal.
    Thus these third world savers subsidise first world consumers.
    So far so mechanical.

    What grips my shit, from a moral perspective, is that the first world will in time come to shaft the third world savers.
    Which they will, either through inflation, default, currency realignment or whatever.

  2. @rosBIF,

    Currency realignments are good. They are how to shaft people without shafting them. It is merely the market at work, ironing out imbalances (like third world savers stupidly bankrolling western consumption, curse them!). Ergo the euro is bad. Or something.

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