
“China will almost certainly try to push as much of [its huge and growing debt burden] as possible onto its trade partners. It has every incentive to maintain the largest possible trade surplus for as long as it can, allowing excess production to be absorbed abroad rather than forcing a sharp contraction in domestic production and employment.”
~ Michael Pettis
Carlos Alegría and Edward Dowd of Phinance Technologies consider the U.S. export of inflation and China’s potentially deflationary manufacturing export juggernaut.
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