During an interview granted to Hank Paulson by Zhou Ziaochuan, governor of the Chinese Central Bank, Zhou said that "over-consumption and a high reliance on credit is the cause of the US financial crisis" and "as the largest and most important economy in the world, the US should take the initiative to adjust its policies, raise its savings ratios appropriately and reduce its trade and fiscal deficits".
The BBC commented: This seems an unambiguous statement by the Chinese that they're no longer prepared to finance the spendthrift ways of the US and the UK: they don't want to lend more and they want to be confident that what they have lent won't disappear in a puff of bad debts and inflation.
The US and the UK could start by firing the bosses of the major financial companies (since no one has the integrity to resign any more), and reducing the salaries of the remaining so-called "masters of the universe", who are alleged to be so smart, but who have been running a Ponzi scheme to great acclaim from the "experts" who manage our money.
In one hundred years of sustained effort al Qaeda couldn't have produced a more devastating effect on all our lives. And yet the financial wizards witter on about the "underlying strength of the economy" and the amazing "productivity" of the American economy (solely at the expense of the poor consumer, who has to cope with the lousy service caused by reduced customer service and manpower).
We need a new and more ethical form of capitalism. The old system is bankrupt.