[lbo-talk] The Long March From Yenan to Barclays

[bhandari at berkeley.edu]

Until the Chinese exercise their claim to purchase some sort of American
output, their willingness to hold the check constitutes a loan from China
to the United States.

Thus this question:  will this export of capital prove a transient,
periodic phenomenon to be interrupted sooner or later  and replaced by the
import of US  goods as part of an even bigger domestic Chinese investment
boom?

If not, then why not? And what would that imply? A foreboding inflation of
financial assets?

Rakesh