chinese stimulus, page-109

Absolutely Dopey. It would be boring if we all thought the same. I actually like it when you keep me on my toes and question my assumptions (as I hope you do too).

All right Menta, we are having the Habsburg/Hohenzollern v Ottoman/Romanoff stand-off on HC:-). Putin v Merkel...i am Putin, the bad guy in this discussion.

Remember: my point was that - there is only one Japan and the global dynamics are very different now from the start of the period of Japan's 'lost decade'.
We agreed that EZ (and US) has high unemployment (= US U6), low inflation (manly because of EZ periphery + global rebalancing (Chinese reforms, developments in EM and FM (frontier markets).

What we don't agree on is the mechanics of the global capital flows. One of your main point was that DMs stopped saving.
Well, that is not exactly supported by data.

Gross National Savings - advanced and developing economies since 1980. Spot the 'imbalance'. Asian financial crisis and subsequent currency accumulation?

Think about this and let me know what is your take on all of this. Use simple accounting identities to follow the flows in reserves, current accounts and capital accounts in global rebalancing.