We may be facing the greatest economic downturn in history. The U.S. seems to go on with another round of QE perhaps until the bond market makes them stop.
As I posted, the Korean economy has reportedly grown. Is this an organic growth or just an illusionary growth?
When a nation’s growth has been fuelled by deficit/credit binge, not organic spending, that is an illusionary growth.
Korea has to curb bubbles and balance the budget.
In the meantime, Korea may have to invest in productive enterprises more proactively to boost incomes and employment, which will in turn prop up the middle class. Korea needs the domestic consumption base to fall back on when its exports dwindle.
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