Economist Heleen Mees is making her first inroads into the US media with her PhD, blaming Chinese savings as the basis for the current financial crisis. But they got help, explains Heleen Mees in CNBC, as Ben Bernanke, chairman of the US Federal Reserve, triggered of aggressive rate cuts from the early 2000s.
The study, which compared financial market responses to U.S., Chinese and German quarterly GDP from 2006 through 2009, shows that the Chinese have been saving more than half of their GDP during that time. Those savings were heavily skewed towards fixed income assets like government bonds and depressed interest rates worldwide from 2004 on.
This allowed for interest rates around the world to fall, and sparked a boom in the U.S. housing market due to the availability of cheap money.
The study also argues that Ben Bernanke, chairman of the U.S. Federal Reserve, set the world up for the Great Recession by providing the “intellectual backing for the aggressive rate cuts in the early 2000s.”
- Will the Chinese stop saving (that much)? – Heleen Mees (chinaspeakersbureau.info)
- China’s savings, not banking products, caused financial crisis – Heleen Mees (chinaspeakersbureau.info)
- Is the prevailing economic doctrine right? – Heleen Mees (chinaspeakersbureau.info)
- Why stock markets react on China figures they do not trust? – Heleen Mees (chinaspeakersbureau.info)
- Heleen Mees joins China Speakers Bureau (chinaspeakersbureau.info)