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Feb 16, 2012

Chris and I once again analyze the book Economics in One Lesson by Henry Hazlett.

We don't complete the entire book but after three episodes we felt the need to move on to more current topics. Besides, I finished this book weeks ago and I want to discuss other things (selfish, I know).

ten and a half years ago

Factory activity in China coaerncttd for a fifth straight month in March, hit by declining order books, disappointing exports and new hiring hitting a two-year low ...China's slowdown partly reflects the weakness of economies in Europe, its single biggest export partner.Memphis, Tennessee-based FedEx Corp, whose delivery service spans the globe, included a warning with its earnings report issued on Thursday that tepid economic growth was causing it to scale back its outlook for the rest of this year. -- [url=]hlrrdap[/url] [link=]cxoblyx[/link]

ten and a half years ago

U.S. needs faster grotwhMar 26, 2012 "U.S. gross domestic product grew 3 percent in the fourth quarter, but is expected to have slowed to just below 2 percent in the first three months of this year. For all of last year, it grew only 1.7 percent.The U.S. central bank lowered overnight interest rates to near zero in December 2008 and has bought $2.3 trillion in debt securities to drive other borrowing costs lower to spur faster grotwh and cut unemployment.The Fed said it would likely keep rates near zero at least through late 2014."

ten and a half years ago

China needs to slowly shift from being less of an exoprt-led economy to more of a consumer-driven economy.However, in the short-run, that'll cause inflation and unemployment.China hasn't had the massive "creative-destruction" process, in over 20 years, that's needed to fundamentally improve the economy, most likely, because the communist elites don't want massive political upheavel.There are many problems in China's economy. I stated before:China's GDP is an illusion. The private sector is small (consumption fell from 45% to 36% of GDP in the past decade). Basically, China is a giant assembly plant. What the Chinese do best is corruption, crony capitalism, misallocate resources, cause negative externalities, prevent creativity, create inefficiency, and exoprt much of its GDP.