My newspaper says — “Fears of contagion from Chinese economy spark global sell-off”. The real contagion is that of the West which has been printing money for the last 100 years — and particularly an overabundance . . . of dollars. China actually came to the rescue of a Western economy that was rapidly stabilizing in 1979 when it re-entered the international trading system.
Instead of America responding with either insisting that China’s currency should be free floating or that it would put its own dollar back onto the gold standard (from which Nixon cut it off in 1972) then 2008 wouldn’t have happened nor would we be in our present impasse which will now prove to be very long term.
It will also mean that only those portions of advanced countries that are highly educated and can exchange advanced services for China’s consumer goods exports will prosper in the coming years.
When the governments of the industrialising countries in the 19th century made the fateful mistake of copying Count von Bismark in taking education away from employers — in order to condition children’s minds and thus be able to conscript a mass army when necessary — then the present growing bifurcation in the advanced countries would never have happened and we’d have had maximum social mobility, not the growing seizure of today.