I think the absorptive capacities of these economies, including China, must be a factor for the continued lending. China is certainly not growing slowly because it is lending money to the US. It just that it can't utilize that amount of capital in its domestic economy. It's a classic structural problem IMHO.
Anthony xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Anthony P. D'Costa, Professor Comparative International Development University of Washington 1900 Commerce Street Tacoma, WA 98402, USA Phone: (253) 692-4462 Fax : (253) 692-5718 http://tinyurl.com/yhjzrm xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
