Credit crisis the solution, not the problem

By Jame DiBiasio | 30 May 2008
Keywords: lombard street
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Chinese inflation and US indebtedness can work to the other’s benefit, if policymakers in both countries allow it, says Lombard economist.

According to one economist, China and the US suffer from mutually reinforcing problems that can begin to be solved, thanks to the subprime-triggered liquidity crisis, if Beijing lets it.

Charles Dumas told the audience at last week’s AsianInvestor annual Asian investment summit in Hong Kong that he’s optimistic about the future of both economies because the solution to each of their problems is compatible – provided that policymakers and politicians in Beijing and Washington step back and let market forces work.

Dumas is chief economist and head of world service ...
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