Do we have only ourselves to blame for whatever credit crisis there is, if any, that exists in the United States ?
With Chinese Savings Rates at 50% and the USA Savings Rate at essentially 0% are we to blame for the credit crunch? Maybe we should be taking a lesson from our Chinese friends---Savings is a good thing and stop attempting to convince others to mimic our bad behavior.
In the early 1990's Americans were saving about 7% of their disposable income, by the latter 1990's it was down to 4% and in 2001 it sank to just 2%---this dropped even further down to nearly 0% as booming growth continued. Americans spent nearly all they earned between 2005-2007 according to Peter Hall, V.P. & Deputy Chief Economist, Export Development Canada
China has a fast growing economy which may lead to a world economy in the future, according to Klaus Schwab, Founder & Executive Chairman of the World Economic Forum.
Schwab said the "Wall Street" storm has shocked the world. "The change in the financial system will surely bring severe influence to the world," adding that the depression of the Wall Street will change the way of working as well as the way of global cooperation.
Predicting that the world economy will see a slowdown in growth in the next one to three years and China's growth rate is also expected to drop according to Schwab but he stressed that China is still the fastest growing economy in the world and will keep high growth in the future.
More here from China View
Without adequate saving and investment, the USA can not adequately sustain economic growth and expansion. When economic growth slows, with less capitalization in the marketplace, there are fewer resources available to provide credit. Putting politics aside and stopping the finger pointing, I am reminded what my Mother
used to tell me.
"When you point a finger at someone, remember there are 4 fingers pointing back at you."
We may only have to look at ourselves in the mirror to realize who is really to blame for the economic slow down in the United States.
China can sustain economic growth with a much larger savings pool available for expansion and economic development, while here in the USA we refuse to learn valuable lessons from our Chinese friends and instead continue to attempt to spend ourselves out of a crisis.
