The Losers Are Now The Winners

The "Asian" model of economic development is to subsidize exports, prevent imports and maximize your foreign exchange earnings. I call it modern mercantilism.  If a country runs up a huge export surplus then those earnings have to be recirculated to balance their account so the country then buys a debtor country's debt or equities or even their sub-prime loans.  If you depended on the US consumer to buy all your exports then you just hit a wall.  The biggest exporters of capital are now in big trouble. And they are…
Future Losers

and the winners will be…

Futture Winners

US!!

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