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...Trading Places A few years ago, that question - and the notion that China could drive global growth - would have seemed absurd. After all, China's economy was dependent on manufacturing, which was in turn dependent on demand from the U.S., the world's undisputed economic locomotive. But that engine remains sidetracked. The IMF predicts the U.S. economy will contract 2.6% this year. American home prices continue to fall in some cities, while the unemployment rate has soared to 9.5%, the highest since 1983. The U.S.'s much ballyhooed stimulus plan has so far yielded little measurable benefit, save putting some...

Author: /time Magazine | Title: Can China Save the World? | 8/10/2009 | See Source »

...Fast still, the best possible answer to the question of whether China can save the world is: Not yet. Plenty of economists doubt that China's economy is as sound as it appears or truly on the road to a sustained recovery. And many more dismiss the chatter about China as the world's economic savior as hopelessly premature...

Author: /time Magazine | Title: Can China Save the World? | 8/10/2009 | See Source »

...optimists, the June data showed just how determined the Chinese government is to implement effective monetary countermeasures to fight the downturn. As Peking University finance professor Michael Pettis says, China is "throwing everything including the kitchen sink'' at the problem. There is no question that as a result of the flood of financing, a lot of Chinese have jobs they otherwise wouldn't. But, as Grant's Interest Rate Observer, an influential Wall Street newsletter, points out in its latest issue, "Massive injections of money and credit ... are always bullish before they are bearish." The newsletter draws worrying parallels between...

Author: /time Magazine | Title: Can China Save the World? | 8/10/2009 | See Source »

...question many of us could ask. More than 45 million Americans now belong to a health club, up from 23 million in 1993. We spend some $19 billion a year on gym memberships. Of course, some people join and never go. Still, as one major study - the Minnesota Heart Survey - found, more of us at least say we exercise regularly. The survey ran from 1980, when only 47% of respondents said they engaged in regular exercise, to 2000, when the figure had grown...

Author: /time Magazine | Title: Why Exercise Won't Make You Thin | 8/9/2009 | See Source »

...That question isn't being asked only by liberal antiwar opinion-makers. It has also been raised by a growing number of senior officials in Washington and U.S. commanders in Iraq. An internal memo drafted by Colonel Timothy Reese, an adviser to the Iraqi senior military command, and leaked to the New York Times last month doesn't mince words. He writes that it is time "for the U.S. to declare victory and bring our combat forces home...

Author: /time Magazine | Title: The Case for Leaving Iraq — Now | 8/8/2009 | See Source »

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