NEWSFLASH! In September I will join The Conversation as its Business and Economy Editor. I have been honoured to work at The Age for the past ten years, originally alongside the legendry Tim Colebatch, and for the past four years as economics editor in my own right.

At The Conversation, my job will be to make the best thinking from Australia's 40 univerisites accessible to the widest possible audience. That means you. From the new year I will also write a weekly column.

On this site are most of the important things I have written for Fairfax and the ABC over the past few decades. I recommend the Search function. The site is a record for you, as well as me.

I'll continue to post great things from The Conversation and other places here, and also on Twitter and Facebook. Enjoy.

Tuesday, September 23, 2008

Could China be the last hope of the US?

It's a bizare thought, but these are bizare times.

Peter Drysdale and Harold James:

"Only China has the firepower and capacity to be rescue the international financial system from the threats from America’s financial meltdown today.

When the 1920s and ’30s crisis hit, America alone had the capacity to take the big public sector action at home that was needed to stem the panic and economic collapse and the reserves to save Europe and the rest of the world from massive contagion.

Then, and now, a globalised world means that the solution to such crises spans borders. Aside from the United States, only China has the firepower to rescue the global conglomerates at the heart of the global financial system now under stress.

China can’t be expected to play its role in these affairs until it is brought into the centre of the global economic decision-making processes."

HT: Harry Clarke