http://www.bloomberg.com/apps/news?pid=20601087&sid=au8I9W6ObNhQ&pos=5

My comment: Most of what I say in this message does not apply to US
economy unless I say it explicitelly. Now, US authorities have to push
growth hard.

As we have discussed here, global economy is in a crossroad. As a
whole we could say that it has entered into fourth phase and current
step in to dismantle exceptional rules. Now we are facing the
challenge: if we go too fast we are bringing inflation, if we go too
slow we are missing growth opportunities. Also, I can perceive that it
is time for politicians to explain it in detail in particular in
countries where unemployment is still high.

If countries “withdraw the stimulus measures now, the global economy
will plunge.”,  Chinese Commerce Minister Chen Deming told. “For the
world as a whole, it’s premature to think about exiting stimulus,”
prof. Joseph Stiglitz said at the economic conference in Shanghai
today.

Obviously, one thing is words and something else is facts. Many
countries are dismantling cautiously some exceptional rules already as
inflation is becoming higher priority than growth. Of course, we
cannot ask authorities to push growth if they do not have unemployment
and they have inflation in their economy. Selfishmess and selflessness
must go hand by hand.

Now, I talk about economies that are behind, such as US economy. In
2009 and partly in 2008, most countries around the globe have been
pushing growth, sometimes at any price. The overall flow or trend
helped all economies, i.e. growth in China helped growth in Japan,
growth in Japan helped growth in India, and growth in India helped
growth in China. But now, the river flow is going to reverse soon.
Economies that are behind will have to fight against its own problems
and against the overall flow of the river.

Peace and best wishes.

Xi
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