Commentaries, Analysis, And Editorials -- August 19, 2019

Shoppers browse at a discount store in Tokyo. Hit by the trade war, the Japanese economy expanded by just 0.2 per cent in the third quarter of 2019. Photo: Reuters

Neal Kimberley, SCMP: A protracted trade war may be the final blow that will sink the indebted world economy

* Global debt is growing faster than the global economy, which is simply not sustainable
* And as the US-China trade war drags on, major economies that are reliant on the global supply chain are running just to stay in the same place

With global debt rising, the world economy has to run just to stand still, like Alice in Through the Looking-Glass. It might seem odd to reference Lewis Carroll’s 1871 children’s book but Alice’s experience in the looking-glass world has a modern-day resonance for the economy. It also underlines the world’s urgent need for Beijing and Washington to reach an accommodation on trade.

In Carroll’s book, Alice gets into a race with the Red Queen, only to find that, although she runs faster and faster, she gets nowhere.

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Commentaries, Analysis, And Editorials -- August 19, 2019

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