From the Brunei Times:
“In Latin America, IMF economists said the crisis is affecting countries differently depending on whether, like Mexico, they are more closely tied to the US or, like Brazil, they have more links with China.
“If it was not for China we wouldn’t have seen positive growth in the second quarter in Brazil,” Ilan Goldfajn, chief economist at Brazilian bank Itau Unibanco, said at an IMF-organised conference in Istanbul. He said the world would now start to “rebalance towards Asia”.
That part you put in bold, it screams, “unsustainable” doesn’t it. Much like housing in the U.S. wouldn’t have continued with postitive growth without the stimulus of the easy money terms from the Central Bank.
It’s as if they have no clue, but how could they not after everything else that has happened already?
I guess it just depends on if you think that China can be self sustainable after they remove their stimulus going on now (or if they ever do)… artificially induced economies can chug along for quite some time, as we found out here in the U.S..
It’s all a confidence, shell game, until it’s not.