Thursday, April 02, 2009

It takes two to have a global economic imbalance

Quote of the day from Jeremy Warner:

The Germans have sneered at Britain's credit-fuelled, free-spending ways and rightly predicted that they would end badly, but who did they think were buying their BMWs and Miele vacuum cleaners? The tooth fairy?

If Britain, the USA and other countries that have been running current-account deficits will need to start saving more, then Germany, Japan, China and other countries with surpluses will need to start spending more.

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