<div class='quotetop'>QUOTE(rlbell @ Jun 9 2006, 02:51 PM) [snapback]235500[/snapback]</div>
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Right now a problem is that a lot of goods are contributed to the pool by chinese labourers, but are drawn from the pool by americans. Right now, the task of figuring out how to move the correct amount of goods from China to America is handled by market pressure-- american consumers are willing to pay, so the chinese are willing to ship.[/b]
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Currently this is only partially true (as the US economy is unbalanced and becoming more so at an increasing rate) and is rather a distinction in the foundations of the American and Chinese markets. From the international perspective China has primarily an industrial economy (a producer of real goods) while the US has a primarily service-and-technology-oriented economy -- a transition which has been taking place for the past half-century or so. Should the ratio of imports to exports (financially, not physically) in the US become any more unbalanced it's going to eventually face a late-Roman-esq deterioration where increasing debt destabalizes the economy and the dollar. Americans are simply hoping that exported services will make up for decreased production and exportation of real goods.