Economic Food for Thought

Michael Pettis's brief review of American Development economic history and lessons for China's current developments. Lots of discomforting thoughts. Of course, also too general and not quantified enough for effective implementation, but then, so's much of political economics, I guess :D

Victor Davis Hanson's essay on the culminating changes of the past few years in America. More discomforting thoughts.

The pending European currency crisis will probably be the trigger of worldwide economic tumult, but whether China or the US goes second is the key question for the rest of us. Arguably the market is already pricing in the European currency collapse, but the order of the subsequent crises will drive how you should prepare. If America goes second, then we simply need to preposition our savings and wait out the American inflation. If China goes second, however, there will be geopolitical disruptions in addition to an American recession, which argues for a different savings allocation.