Everything on China

As the global economy continues to plummet, the favorite to pull the rest of us out of this recession is China. Having changed its overall economic structure, China has emerged as the greatest economic power since the United States' era before 2008. I find it extremely frightening that if one bad move by China were to occur, the global economy could be set into a tailspin. The biggest problem that China is currently struggling with is inflation.

“The money supply is too large,” said Andy Xie, an economist based in Shanghai who formerly worked at Morgan Stanley. “They increased the money supply to stimulate the economy. Now land prices have jumped 20 times in some places, 100 times in others. Inflation is broad-based. Go into a supermarket. Milk is more expensive in China than it is in the U.S.”

If China risks inflation, then their changes in currency will greatly affect trading and finance all across the board. Rather than looking at China as a competitor, countries must see them as a foundation from where supporters can enhance their own prosperity. My personal opinion is that complete responsibility on one nation's economy is incredibly unstable, but only so much can be moderated. As seen in the article, China reached their height because of their government influence on the market. All that is certain is that the next move could decide how the economy will either heal or tear itself apart.