Save the trade imbalance world - Arise! All those who don't want to be slaves! -

Chinese lyrics : Arise! All those who don't want to be slaves!

ECB cuts its main refinance rate to 0.5%. Devaluing Euro, USD and Japanese Yen will slowly improve trade imbalance. However, the world trade imbalance will be not fixed until "arise" of Chinese consumers.

China export many products at very good price. Countries will be continue importing from China. Only when Chinese internal demand increase. China will increase their import. And their export price will be  driven up by strong domestic demand. As a result, export will slow down and import increase. Trade imbalance will improve.

Shall we give our blessing to all Chinese consumers ? I think I will ...

My recommendation: Maintain 20% cash 30% bond 50% stock