Colin Chen

Decoupling: The Theory That Won't Die

The various metrics that account for the growing trade between China and its peers don't really account for the final global cash flow. I'm don't know how much of that trade is for consumable goods and how much is for the various components of a final product to be sold in the us.

That mentioned, I share the author's opinion that the infrastructure of these economies have some what decoupled from the west, and a slow down in the US won't wreck as much havok on the chinese and indian economies' GDP growths.

However, the various financial markets have become much more interlinked and codependent. I shutter to imagine the global capital flow suddenly changing course or if the china starts massively selling its accumulated US treasury securities...