Last month China became Japan's number one export destination. Japan's trade with Asia is three times that of USA and still growing.
Americans think everything is related to them, typical exceptionalism. If good times are 4-5 year old at least pretty much everywhere and now things are slowing down at the same time, Americans think IT MUST BECAUSE OF US. No, you are not that powerful anymore. You are just has-beens, ex-superpower now.
Yes, i have the same reaction to that kind of heading. The idea that the types who run banks and trading desks would sit on piles of cash for no tangible reason is somewhat ridiculous, to put it mildly.
If they're not lending, it's because they can't. And i suspect most people here know why that is.
I like the way economists create a "mystery" because they assume away the complexities of the economic system. In recent decades they assume that there are no financial intermediation costs, so markets can be ignored. But that means we have to ignore the effects of financial inter-mediators on credit cycles across the world. Then when the very engine of growth for the last three decades (global credit growth and "asset based" economics) are excluded from consideration, they wonder why economies move in synch!!
Karl Marx would call it a consipracy to make us stupid.
Last month China became Japan's number one export destination. Japan's trade with Asia is three times that of USA and still growing.
A large fraction of China's trade surplus with the US is actually a concealed Japanese trade surplus. High value-added Japanese components go to China for final assembly into products for the US. The Chinese add little value, and most of the revenue goes back to Japan. Thus Japan's true trade surplus with the US is much larger than it appears -- and China's is that much smaller.
Sinkronized syncing would have been better.
I prefer Tom Lehrer's "We Will All Go Together When We Go."
Any Lehrer!
Tom Lehrer's
When Alabama get's the bomb!
"Who's next?"
Got Popcorn?
Neil
Mutually Assured Debt Default?
Peak stupidity wake up call.
I see the NYT article repeating a common theme, "financial systems gripped by fear."
Are lenders holding back on loans to creditworthy borrowers because they are afraid? Or because they don't have as much money to lend?
The paper "International Aspects of Financial Crises" that Krugman links to on his web page is pretty interesting. It was written in 1989:
http://www.nber.org/chapters/c6230.pdf
Unredecoupling.
John Stark,
I'll take 'not as much to lend' with a 'only if we really think you can pay it back' kicker!
Is decoupling what happens during a train wreck or is it when a train goes off the tracks?
Financial fornication and decoupling don't have to hurt.... save your family and prevent, decoupling
Tom Lehrer - We will all go together when we go
Tom Lehrer - Who's next?
Dear Calculated Risk,
Great Britain has been the very puppet of USA economy and military, but doing it with advantage and smaller taxes.
51% of GB economy is the city of London working at the heart of financial engineering. The rest was a bit of housing bubble.
They peaked oil a few years ago.
They sold their crowns to India and China.
Is there anything left, out of some russian or GCC girls consuming things?
Decoupling of what?
From being the puppet of USA?
The day the pound goes lower than the euro we'll stat to talk about that.
The british are still thinking they are an empire, but don't worry, they will learn bit after bit what economy means.
Thank you
KoZoonator - I have always wondered why when you leave an aircraft you deplane but when you leave a train you dont derail
John Start:
Yes, both.
The solution: complete apathy.
How about: If you leave me, can I come too?
YouTube -
She's Leaving Home (vocals)
Awesome find, the vocal tracks only.
Thanks for the Tom Lehrer. When he closed up his piano and went home, it was, he said, because the world had become impossible to satirize anymore.
Last month China became Japan's number one export destination. Japan's trade with Asia is three times that of USA and still growing.
Americans think everything is related to them, typical exceptionalism. If good times are 4-5 year old at least pretty much everywhere and now things are slowing down at the same time, Americans think IT MUST BECAUSE OF US. No, you are not that powerful anymore. You are just has-beens, ex-superpower now.
With all due respect the UK going down is not proof that decoupling is not working. UK, Spain all were part of the US driven liquidity mega bubble.
Growth in China, India, all the other BRICs and bubblefree countries in Europe - this is where decoupling either happens or not.
John Stark: Financial systems gripped by fear?
Yes, i have the same reaction to that kind of heading. The idea that the types who run banks and trading desks would sit on piles of cash for no tangible reason is somewhat ridiculous, to put it mildly.
If they're not lending, it's because they can't. And i suspect most people here know why that is.
The only thing we have to fear is...using "fear" as a way to mask the financial system's insolvency.
Not to mention its stupidity.
I like the way economists create a "mystery" because they assume away the complexities of the economic system. In recent decades they assume that there are no financial intermediation costs, so markets can be ignored. But that means we have to ignore the effects of financial inter-mediators on credit cycles across the world. Then when the very engine of growth for the last three decades (global credit growth and "asset based" economics) are excluded from consideration, they wonder why economies move in synch!!
Karl Marx would call it a consipracy to make us stupid.
Last month China became Japan's number one export destination. Japan's trade with Asia is three times that of USA and still growing.
A large fraction of China's trade surplus with the US is actually a concealed Japanese trade surplus. High value-added Japanese components go to China for final assembly into products for the US. The Chinese add little value, and most of the revenue goes back to Japan. Thus Japan's true trade surplus with the US is much larger than it appears -- and China's is that much smaller.
For a now hysterically funny page from a rather recent book along these lines, look here:
J. Christoph Amberger's hot trading ... - Google Books