Does this tie in somehow with Greenspan wanting a weak dollar for a bit? Would that help China implode? Or is this just more spin?
http://www.nytimes.com/2003/12/14/business/yourmoney/14view.html?ex=1071982800&en=a67a59e861ee65cd&ei=5062&partner=GOOGLEsnip>
While China's leaders portray themselves as farsighted engineers who can manage their country's economic growth better than a democratically elected government could, their recent economic policies show a strong inclination to let the good times roll for now and to worry later about any ensuing bust.
Prodding the money supply while resisting currency appreciation shows a reluctance to let economic growth falter at all, even as Western economists put China's expansion at an annual pace of 10 percent this fall. "If you're very preoccupied about social stability and you've got a weak banking system, do you really want to appreciate your currency?" said William Belchere, chief Asia economist at J. P. Morgan Chase.
Alan Greenspan, the Federal Reserve chairman, was accused in the late 1990's of letting the money supply grow too fast to accommodate American economic growth. Economists differ on how much this expansionary monetary policy aided the Internet boom and subsequent bust.
But Mr. Greenspan's management of the American economy then seems downright stodgy compared with the conduct of China's rulers now. Indeed, Mr. Greenspan warned in a speech on Thursday of a possible overheating of China's economy, "with its potential recessionary consequences."
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