Can Alan Blinder Read Ben Bernanke's Mind
W00T!! W00T!! W00T!!!

Let Me Say That Gideon Rachman--or at Least His Headline Writer--Is Wrong


China can no longer plead poverty: Of course, the city has pockets of poverty. And Shanghai is not China, where 150m people (out of a total Chinese population of more than 1.3bn) still live on less than $2 a day. Even so, China’s insistence that it is a poor, developing nation is beginning to wear a little thin. This, after all, is a country that is sitting on more than $2,500bn worth of foreign reserves. In important ways, China is now a rich nation. But its insistence that it is still a “developing country” has become a shield to protect itself against vital political and economic changes that matter profoundly to the rest of the world...

China can still plead poverty. What China cannot do is ignore that it is now a great economic power, and as a great economic power it can no longer make its own internal policy decisions without any consideration of their consequences for the world at large.