[accessing the collective brain]

[osl]

Can anyone give me a short primer on how China's economy is touted for its strength in part because of the amazingly high private savings rate (nosing up around 40% in some cases), but when the US takes a downturn, it's lamented that Americans are saving too much and not spending enough to 'stimulate' the economy?

(No, is not a rhetorical

Comments

[coachjg]

I absolutely don't know for sure but, could it be that they're making enough (relative to their costs) to save AND spend? So, their banks are well stocked and there's cash circulating?