Stephen Roach is Badly Confused About China and the United States

Stephen Roach managed to get the basic economics 180 degrees backwards in his discussion of China's turn to a more consumption based economy and its implications for the United States. After commenting that China will likely export less to the United States as it produces more for its domestic economy, he tells readers;

"The coming transition to a rebalanced China changes the rules of engagement in this co-dependent relationship. America seems unprepared for this possibility. Long dependent o...