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...With the Fed now back in play and a slowdown just around the corner in China, it's d?j? vu in Asia. The region's vulnerabilities stem from the long-standing deficiencies of internal demand?namely, the lack of support from private consumption. Until Asia establishes a better balance in its growth dynamic, the impacts of external disturbances will forever be magnified. The 1997 crisis drove this point home with a vengeance. Since then, Asia has concentrated its efforts on repairing the cracks in its financial architecture that proved so damaging back then. But no two crises are alike...

Author: /time Magazine | Title: The Recovery Is at Risk | 5/24/2004 | See Source »

...federal funds rate is a joke. A year ago, the Federal Reserve implemented an "emergency" policy stance in response to a full-blown deflation scare. That was the right thing to do at the time. But now the emergency is over, suggesting it's high time for the Fed to return interest rates to more normal settings...

Author: /time Magazine | Title: The Recovery Is at Risk | 5/24/2004 | See Source »

...Throughout the history of modern Asia, the Fed has been the only central bank that really matters. That's true partly because the Fed, by controlling borrowing costs, holds sway over the credit-loving American consumer, long the principal driver of Asia's external demand. In my view, Asia is deluding itself in believing that it has uncovered a new, autonomous source of growth in China. In the end, the American consumer remains very much in charge. That's especially true for China, whose economic health relies heavily on American consumers borrowing money to buy mainland-made washing machines, toys...

Author: /time Magazine | Title: The Recovery Is at Risk | 5/24/2004 | See Source »

...partial to a drop of tea but fed up with the raucous atmosphere and chain-smoking laobaixing (the colloquial Chinese expression for the man in the street) that cram Shanghai's regular cafés, then check out the sedate and sequestered atmosphere of the Guyuan Antique Teahouse, tel: (86-21) 6445 4625. Inspired by Ming-dynasty architecture, the city's finest tea parlor is a classy joint where executives come to impress clients and contacts with China's most exclusive brews. Its imposing wooden gateway (200 years old and transported to Shanghai from culturally rich Shanxi province...

Author: /time Magazine | Title: A Better Kind of Brew | 5/24/2004 | See Source »

...Bradshaw, heroine of TV’s “Sex and the City,” famously remarked in the episode where she models for a New York fashion show, “When I was broke sometimes I would buy Vogue instead of food. I felt it fed me more...

Author: By Rena Xu, | Title: Real Girls in a Barbie World | 5/17/2004 | See Source »

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