The Chinese export bubble is over
Posted in News on 03/11/2009 08:10 pm by photo182
I pulled this chart from Brad Setser’s blog. As Brad puts it….
After soaring for most of this decade — the pace of China’s export growth clearly turned up in 2002 or 2003 and then stayed at a very high pace — China’s exports are falling back to earth. The surge in China’s exports could prove to be as unsustainable as the rise in US (and some European) home prices. They might end up being mirror images … as Americans and Europeans could only import so much from China so long as they could borrow against rising home prices.
Alice Cook http://www.blogger.com/profile/05753570123987780947