China Swallows Obama Stimulus Meant for U.S. Economy: Andy Xie

The global economy is like fried ice cream: If you don’t act fast, it turns into a mess.

American pundits, Nobel laureates included, are predicting Japan-style deflation for the U.S. and Europe. They are urging the Federal Reserve to pursue another round of quantitative easing to stop the onset of an Ice Age for Western economies. The Fed didn’t oblige at its last meeting, but it threw a bone to the deflation crowd by promising not to pull money out of its previous round of asset purchases to stimulate a recovery.