As the U.S. and the west's bubble economy implodes, exposing the thin air at it's core, the political players and crony capitalists have grasped at the hope that they can pull the world's last solvent countries into one last "collective" effort to save themselves.They need a bigger rug to sweep the dirt under. Luckily, it looks like China, which was already burned on U.S. investments will not be in on this. This is wise.
"Asked whether China might pursue economic policies aimed at saving the world, Mr. Lou said that the country’s leaders had a narrower focus. “China can only save herself because the scale of China is still rather small,” he said, adding that while China has more people than any other country, economic output is still low enough that the Chinese economy is not yet big enough to have a big effect on the global economy.
“If China can do a good job domestically, that is the best thing it can do for the world,” he said.
Mr. Lou’s comments represent the clearest statement yet that as global financial markets have plunged this year and economies have slowed, the attention of China’s leaders is turning inward."
The Chinese government seems to have a grip on how small it's economy still is and how much it needs to retain it's currency reserves and savings to boost it's own productivity.
They also are rightly afraid of the ever changing legal and financial environment in America with it's ever changing soup of programs and bailouts sold as way to "instill confidence in the markets."
"Mr. Lou said that the sheer pace of new initiatives and new rules issued by Western regulatory agencies was disconcerting and made it even harder for him to choose worthwhile investments. “If it is changing every week, how can you expect me to have confidence?” he asked."
That leaves the government ever more reliant on the printing press to fund it's schemes.