“Both economies, the United States’ and China’s, continue to struggle— trapped in antiquated growth models that are not delivering the prosperity that politicians and leaders continue to promise. In these circumstances it is far easier to assure one’s constituents that they are not to blame than to tell them to lower their expectations and make sacrifices. True to the pathology of codependency, it is especially easier to blame one’s problems on foreigners than on oneself.” ~ Stephen Roach
By Catherine Austin Fitts
Did you read Stephen Roach’s recent WSJ editorial?
After you read his editorial, don’t miss his new book Unbalanced: The Codependency of America and China. It gives an essential overview of our opportunity to rebalance our relationship with China and our global trading partners as an integral step to shifting to a economic model based on real prosperity.
When you order it, please make sure to send copies to your Congressman and Senators.
To inspire you to do so, we are openly publishing our interview yesterday with Stephen as a Special Solari Report.
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Read the transcript of Stephen Roach – Seeking US-China Balance here (PDF)
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As we come into mid-term elections, an increasing number of commentators are calling for a new vision for America.
Strategic visions are important, as Stephen Roach points out in Unbalanced. The visions that are called for come from people who have mastered the nuts and bolts and who have the intellectual fearlessness to say what needs to be heard, not just what’s popular.
Stephen Roach has walked in many worlds with integrity. For years he served as chief economist at Morgan Stanley. Long after many of us dismissed Wall Street research, Roach’s work was the exception to the rule. His publications repeatedly warned investors and policy makers about the conditions that led to the financial crisis, doing so while there was still time to do something about it. He then served as chairman of Morgan Stanley Asia. Roach now serves as a senior fellow at Yale University’s Jackson Institute of Global Affairs and as senior lecturer in the School of Management.
Roach’s thesis is sound. A successful vision of America requires a successful rebalancing of our economy in relationship with our major trading partners, including China and her 1.3 billion citizens. In Unbalanced, Roach lays out the risks and opportunities in doing so.
Can you imagine what would have happened if our leadership had taken Roach’s warnings to heart in the early 2000’s?
The next meeting of the US-China Strategic and Economic Dialogue will be held in Beijing in early July. As citizens and investors, let’s hope the US representatives have the benefit of Roach’s wise thinking to inform them.