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The USA should become China, says US Federal Reserve Chairman

post #1 of 10
Thread Starter 
Obviously I've exaggerated the headline, but anyways:
http://www.theaustralian.com.au/busi...-1226151333463

For reference The Australian is owned by the Murdoch-NewsCorp-Fox empire... Australia being the birthplace of Rupert Murdoch.



Commemorative coins for the Chinese calendar's Year of the Dragon are displayed in a Beijing store. Source: AFP
THE US has something to learn from the economic success story of China and other emerging market nations, Federal Reserve chairman Ben Bernanke said today.

Disciplined fiscal policies, the benefits of open trade and the need to encourage private capital formation were among the reasons listed by the Fed chief to explain the high growth rates experienced by China, India and other countries. Promoting technological advances and education are also key factors that helped these countries perform better than the US over the past decade.

"Advanced economies like the United States would do well to relearn some of the lessons from the experiences of the emerging market economies," Mr Bernanke said in a speech, part of the Cleveland Clinic's "Ideas for Tomorrow" series.

When talking about China, Mr Bernanke is usually critical. He's repeatedly blasted the country for relying too much on exports for economic growth. The Fed chief has warned that, by keeping the value of its currency artificially low, the Asian country runs the risk of overheating its economy. This time, he shifted his focus.


Related Coverage
Fed will act if needed: Bernanke

While repeating his warning that China and other emerging nations will be challenged if they continue to rely too much on trade for growth, Mr Bernanke spent more time in his speech looking at the reasons behind the success story of China and other emerging countries.

To gauge performance, Mr Bernanke took three points from the "Washington consensus," a set of economic policy prescriptions promoted for crisis-wracked developing countries by the Washington-based World Bank, International Monetary Fund and US Treasury after the term was coined in 1989 by economist John Williamson.

First, emerging economies have improved their fiscal management to the point that their debt positions are now often more favourable than those of some advanced economies. Second, many developing nations have increased the role of markets in the economy via appropriate deregulation.

"Many countries have successfully promoted growth through a slow and pragmatic but continuing process of liberalisation," Mr Bernanke said.

Third, institutions that promote investment and business formation - particularly by enhancing property rights and the rule of law - have been strengthened in many emerging markets.

An important lesson of the past two decades involves the pivotal role of technology in economic development, Mr Bernanke said. Strong educational systems producing increasingly skilled workforces have proven crucial for climbing the technological ladder.

He pointed to India's information technology industry, which has thrived in large part because of the country's large supply of well educated, English-speaking workers.

China and other emerging market economies should manage to maintain relatively high growth rates for some years to come, as they continue to catch up to advanced economies like the US, he said. But over time, as they become wealthier and technologically more sophisticated, developing nations will gradually lose the advantages of starting from behind.

Mr Bernanke didn't comment on the Fed's latest unconventional step to help a weak US economy in his prepared remarks.

The central bank said on September 21 it will sell $US400 billion ($411.18bn) of its US Treasury securities maturing in the next three years and replace them with longer-term bonds maturing in six to 30 years. The program is meant to drive down long-term interest rates to make borrowing cheaper. The Fed also plans to halt the shrinkage of mortgage securities from its portfolio, a move directed at helping the housing sector.
post #2 of 10
There's been a lot of talk about this lately. The Op-Ed page of the NYT is ready to throw the towel in and go with a Chinese style command economy. Recently a Democrat Governor suggested that US elections be suspended for cycle so the congres wouldn't be accountable to the people and thus could do what want. And they called Bush a dictator
post #3 of 10
Quote:
Originally Posted by FloorJack View Post

There's been a lot of talk about this lately. The Op-Ed page of the NYT is ready to throw the towel in and go with a Chinese style command economy. Recently a Democrat Governor suggested that US elections be suspended for cycle so the congres wouldn't be accountable to the people and thus could do what want. And they called Bush a dictator

That guy had better be removed from office if this is true. Got a link?
NoahJ
"It is unwise to be too sure of one's own wisdom. It is healthy to be reminded that the strongest might weaken and the wisest might err." - Mahatma Gandhi
Reply
NoahJ
"It is unwise to be too sure of one's own wisdom. It is healthy to be reminded that the strongest might weaken and the wisest might err." - Mahatma Gandhi
Reply
post #4 of 10
Quote:
Originally Posted by NoahJ View Post

That guy had better be removed from office if this is true. Got a link?

It's a gal. She was being "sarcastic" she says ... now.

What was Bev Perdue thinking?


Audio

Quote:
I think we ought to suspend, perhaps, elections for Congress for two years and just tell them we won't hold it against them, whatever decisions they make, to just let them help this country recover. I really hope that someone can agree with me on that. You want people who don't worry about the next election.
post #5 of 10
Quote:
Originally Posted by FloorJack View Post

It's a gal. She was being "sarcastic" she says ... now.

What was Bev Perdue thinking?


Audio

First she was "joking." When the audio was released, it was "hyperbole." Now it's sarcasm. One Democratic strategist claimed it was "just rhetoric, not to be taken literally." Shit...just say you misspoke.
I can only please one person per day.  Today is not your day.  Tomorrow doesn't look good either.  
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I can only please one person per day.  Today is not your day.  Tomorrow doesn't look good either.  
Reply
post #6 of 10
Quote:
Originally Posted by SDW2001 View Post

First she was "joking." When the audio was released, it was "hyperbole." Now it's sarcasm. One Democratic strategist claimed it was "just rhetoric, not to be taken literally." Shit...just say you misspoke.

Sd do you really think the us model that IS Destroying America stands a chance?

It will cuange, it has to change... America ia gone, as you wish it to be.

Grow...that's what Amwrica MUST DO.

You're not in Kindergartten America.

Long live... Ok?
"I have been made victorious by terror~ Muhammad

"The future must not belong to those who slander the prophet of Islam," ~ Barack Obama

Reply
"I have been made victorious by terror~ Muhammad

"The future must not belong to those who slander the prophet of Islam," ~ Barack Obama

Reply
post #7 of 10
Quote:
Originally Posted by SDW2001 View Post

First she was "joking." When the audio was released, it was "hyperbole." Now it's sarcasm. One Democratic strategist claimed it was "just rhetoric, not to be taken literally." Shit...just say you misspoke.

Yea she says that now. She forgot to add "psych" to the end of that.
post #8 of 10
Bernanke's advice, or wish perhaps, is the general trend in the US. Capitalism under a paranoid, totalitarian authority.
"We've never made the case, or argued the case that somehow Osama bin Laden was directly involved in 9/11. That evidence has never been forthcoming". VP Cheney, 3/29/2006. Interview by Tony Snow
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"We've never made the case, or argued the case that somehow Osama bin Laden was directly involved in 9/11. That evidence has never been forthcoming". VP Cheney, 3/29/2006. Interview by Tony Snow
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post #9 of 10
Quote:
Originally Posted by sammi jo View Post

Bernanke's advice, or wish perhaps, is the general trend in the US. Capitalism under a paranoid, totalitarian authority.

Politician's have a way of losing the publics trust-

"An MP's wife caught on CCTV stealing a kitten from the home of her husband's lover has been found guilty of burglary."
~ http://www.guardian.co.uk/uk/2011/se...-guilty-kitten
"I have been made victorious by terror~ Muhammad

"The future must not belong to those who slander the prophet of Islam," ~ Barack Obama

Reply
"I have been made victorious by terror~ Muhammad

"The future must not belong to those who slander the prophet of Islam," ~ Barack Obama

Reply
post #10 of 10
Quote:
Originally Posted by Hands Sandon View Post

Sd do you really think the us model that IS Destroying America stands a chance?

It will cuange, it has to change... America ia gone, as you wish it to be.

Grow...that's what Amwrica MUST DO.

You're not in Kindergartten America.

Long live... Ok?

iPhone troubles?

Suspending elections is not growing, electing leaders that we can trust rather than just the name that we can recall having heard on the radio is. You want to have them not worry about the next election, implement strict term limits. Get in, DO YOUR DAMN JOB, and get out. Don't make it easier for them to stay in office regardless of the decisions they make.
NoahJ
"It is unwise to be too sure of one's own wisdom. It is healthy to be reminded that the strongest might weaken and the wisest might err." - Mahatma Gandhi
Reply
NoahJ
"It is unwise to be too sure of one's own wisdom. It is healthy to be reminded that the strongest might weaken and the wisest might err." - Mahatma Gandhi
Reply
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