Roach on Asia

[don]

"This is really a simple picture, and yet it explains so much of what Asia is today. It looks at developing Asia as a whole region, from China and India to places in-between, and breaks the overall GDP down into two main shares: the black line is the export share and the red line is the consumption share. . . . The export share has never been higher; and the internal private consumption share has never been lower. This is Asia." -- Stephen Roach

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Stephen Roach is Chairman of Morgan Stanley Asia. The video above is an excerpt from the lecture Roach delivered at the Asia Society in New York on September 30, 2009

[jk]

Re: Roach on Asia

so much for global rebalancing. but where are all those exports going now?

[ST]

Re: Roach on Asia

so much for global rebalancing. but where are all those exports going now?

We have our orders to shoot them out to space. Somewhere out there, there are new galactic consumers who we can vendor finance.

[c1ue]

Re: Roach on Asia

so much for global rebalancing. but where are all those exports going now?

For China, it is going to the EU - or more correctly those parts of the EU which are suffering the biggest deficits: PIIGS and Eastern Europe.

For Japan, apparently into thin air.