BBC - Peston's Picks.
"So China will continue to fund the growing gap between America's public expenditure and its tax revenues, by recycling to the US the cash of overseas investors who prefer to invest in China's real assets. Mr Zhou is clear that allowing America to live beyond its means is profoundly unhealthy for the global economy in the long term. As he said: "over the long run, large capital inflows are not in its best interest of making adjustments to its economic growth model". Or to put it another way, the US public, private and financial sectors all have to reduce their indebtedness: Americans have to save more."
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