Science, Innovation, Politics
I was in Beijing long before the olympics when they were tearing down hutongs and putting up skyscrappers like mad. Walking through the empty department stores was surreal. It's just you and the shop girl (at least they had manned shops full of stuff); modern pyramids.
I am duly baffled. With that Krugmanesque level of GDP-boosting government spending one would expect a concomitant economic boom. Perhaps The General Theory of Employment, Interest and Money loses something in the Chinese translation or maybe it works about as well there as it does here.
Fascinating. Obama's frequent praise for China has been sorely misplaced (perhaps, the source of his vision of "shovel ready" jobs). I wonder how a command economy of China’s size will react when its controlled "bubbles" finally burst. Likely, we will hear China say "enough" to continued US borrowing and it may even attempt to call in outstanding IOUs.