NY Times- American Dollars Flee to ChIna

The New York Times
December 26, 2008
The Reckoning
Chinese Savings Helped Inflate American Bubble
By MARK LANDLER

“Usually it’s the rich country lending to the poor. This time, it’s the poor country lending to the rich.”

— Niall Ferguson

WASHINGTON — In March 2005, a low-key Princeton economist who had become a Federal Reserve governor coined a novel theory to explain the growing tendency of Americans to borrow from foreigners, particularly the Chinese, to finance their heavy spending...

Full article at: http://www.nytimes.com/2008/12/26/world/asia/26addiction.html?th&emc=th