Apr 09,2017 – JORDAN TIMES – Fahed Fanek
There is an old but persisting question: Why does the world go forward, while we stay back?
This is a basic question that few dare answer. It will remain on the table waiting for those who have the necessary courage to deal with the subject, offer an honest answer and face us with the bitter facts.
Another question: Why does the Chinese economy grow at a very high rate, even at a time of world economic crisis, as do its exports to the world market, which live in recession if not depression, while our economy is slowing down and our exports hardly equal one third of our imports, all blamed on regional circumstances?
The Chinese produce and the world buys.
In our case, the word produces and we buy.
No wonder, under the circumstances, that China has built a huge surplus in its trade balance while we have a huge deficit in ours.
The Chinese do not consume more than 40 per cent of the country’s GDP, even though their standard of living is lower than ours.
Jordanians consume more than 100 per cent of the country’s GDP and cover the gap from expatriates’ remittances and foreign grants.
China makes an extreme case of reducing consumption and increasing exports, savings and investments, and accumulating reserves, while Jordan make an extreme case of inflating consumption, weak savings, slow investments and accumulation of debt.
Jordan complains about heavy debt, the service of which is a very costly burden on the economy, while China complains of too much surplus and worries about the best way to invest it and in what currency.
One should not be surprised if China opts to buy and accumulate gold.