The Chinese stock market is going through a serious correction, and it’s dragging down U.S. stocks as well.

Posted by Gerardo Orlando as Economy, Monetary Policy, Trade, U.S. Relations at 6:04 pm

William Pesak observes in Bloomberg that the US and China are becoming the big-2 in the world economy:

When we think about the world’s most important economies, the Group of Seven springs to mind. Anyone attending this week’s events in Singapore, where the International Monetary Fund held its annual meeting, could be excused for thinking the world has been whittled down to just two economies.

“The most important global economic relationship is the United States and China, the G-2,'’ says Straszheim, vice chairman of Newport Beach, California-based Roth Capital Partners.

That wasn’t supposed to be the emphasis as representatives of 184 IMF members, nongovernment-organization staffers and a small army of journalists descended on Singapore. The planned focus was on spreading prosperity to those it has eluded and on giving more clout to developing nations, not just China.

Instead, it was all China, China, China. When all eyes weren’t on the world’s most-populous nation, the collective attention of IMF-meeting attendees seemed to be on how China and the U.S. together are becoming the core of an increasingly interconnected global financial system.

Perhaps it’s not surprising that the U.S. and China were on center stage. The No. 1 and No. 4 financial powers have created an unofficial global economy; both rely on each other more than they would like to admit. China needs U.S. investment and for U.S. consumers to keep consuming; the U.S. needs China to hold down costs for everything from money to goods to services.

Posted by Gerardo Orlando as Domestic Politics, Economy, Foreign Policy, Monetary Policy, Trade, U.S. Relations at 10:35 am