Monday, July 05, 2010

Goldman Sachs Jim O'Neill Says Watch China & United States "Like a Hawk"

This article is part 2 to an earlier article I wrote a few days ago called Goldman Sachs Chief Economist Warns That China's Economic Troubles Could Lead to Another Global Slowdown. While the earlier Part 1 article paraphrased Mr. O'Neill's words, the below quotes are taken directly from Mr. O'Neill's recent opinion piece in The Sunday Telegraph called "Watch China and US 'like a hawk."

Watching how China handles this attempt at slowing the momentum of current growth without killing the shift to domestic demand is therefore absolutely critical. It is true whether you are from BMW, Audi or Mercedes or for those at top universities or private schools. I was recently in Munich meeting with their largest well known companies, and I left there thinking what is going on in China is more important for that city than anything that is going on in the rest of Europe. If China manages this slowing poorly, then it will be more dangerous for the Germans than any of Greece's financial troubles. Similarly for many of Britain's elite education establishments, if China screws up it would make dilemmas raised from the fiscally austere Coalition seem a minor distraction.

Source: The Sunday Telegraph

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