Xiang Ji’s Bookshelf

After accusing China being responsible for the housing bubble, Bear Stearns, Lehman Brother, Merrill Lynch, AIG, Goldman Sachs, Bernie Madoff and the Fed’s stinking balance sheet, Fed Chairman Bernanke now says China is the reason why the U.S. has almost double-digit unemployment, distressed housing prices, unAmerican consumers and unacceptably low inflation. Keep it up, Ben!

In its new cover story, the outdated British newspaper THE ECONOMIST produced the same old BS it has been manufacturing since the Cold War. Xi Jinping is not an emperor, and the Chinese people are not serfs or slaves. As much as you wish it so, the CCP has little to do with Communism. Presidential dynasties are a phenomenon almost universal. But then, disconnectedness to reality has always been a sign of decline.

is that this is a study that has little forecasting power. Theories are formulated post-fact. According to the classic economics theory, quantitative easing should lead inflation to go up and the country’s currency to depreciate in value. Though that is certainly not the case in the 21 century globalized economy we are in today. US government’s printing press was in full steam, yet deflation is a concern and USD is stronger still.

Always wondered what kind a conversation it would be when the two extremes meet:

For people who make a living by offering predictions, it is worthwhile to track how well their crystal ball work on the long-term.

The famous once-analyst Meredith Whitney is currently forecasting impending crisis for the 50 states in the U.S.

“Crippling debts and deficits are about to make individual states the next casualty of the credit crisis…But other states, such as California and Michigan, will burden the entire country should the federal government decide to step in with a bailout. States are required to balance their budgets, but massive debt-service payments could prevent that from happening in many states and necessitate the federal government to step in.”