主题：【整理】读报摘要：最近一些经济信息的汇总 -- wqnsihs

the problem of today's world: lack of solid consumer demands.

The 2003-2007 boom was created by fake demand backed by consumer liabilities. Credit is partially provided by vendor financing. In US-China case, that's China who provides long-term free credit, through sovereign bond market and then to the mortgage market and consumer credit market in the U.S. Inside EU, Germany provided such credit to PIIGs and other Eastern European nations.

To some extent, it is fair to say that China is the source of globa instability: by encouraging America and financial players taking on more and more external debt. So is Germany.

The best solution: China creates its own solid consumer demand, so that it not only consumes its own excess capacity, but also some of the capacity in Europe and U.S.Thus the global economy rebalances itself. But before China can do that, China must get rid of its dangerous pyramid income distribution and create a big middle-class.

It is about income disparity--but it is a political problem beyond an economic solution.

WXMang is an integral part of the state enterprise establishment. You could not expect him to present a political solution to a political question. He only wants a short-term economic solution.