America continues to borrow from China to finance its heavy spending
America is a heavy spender. At the moment however it does not possess the resources that are required to feed its frenzy. This is why it is increasingly being seen borrowing from countries like China in order to finance their spending. 
The main cause of this dilemma is however not the fact that America spends a lot. All countries are engaged in heavy spending but America made the crucial mistake of not making any savings. Contrary to this the other nations are engaged in heavy savings. This is exactly why China is loaded with excess wealth which puts it in the position to give out generous loans to the United States and that too on remarkably low rates.
This unique change of events has been unprecedented to say the least. Economists are baffled as to how they could have overlooked this phenomenon. At the moment the Americans have little choice but to be patient and accept what they have available to them.
America is still quite heavily dependant on Chinese money which is being loaned out to them on highly generous terms. China has invested more than $ 1 trillion in America in the last ten years. The Chinese have invested in government bonds, manufacturing exports and mortgage debts. This has heavily helped the United States in a number of ways.
Many economists have clearly stated that the attitude of borrowing from China to save the local consumption deficit is not something that is going to bring America economic success. It may in the short term enable the country to sustain its present condition but in the long run if it is not complimented by other economic measures America is heading into a further economic ruin.
The United States however is still addicted to borrowing money from foreigners in order to finance its government spending in an attempt to bandage the broken economy. China is however making full use of the current situation and has managed to use it along with other economic measures to benefit itself.
Economic downturn taking its toll on Tajikistan
The news has been full of reports on how the economic super powers are suffering under the current economic recession. The impact of the recession has however widespread implications as even the poverty stricken people of Tajikistan struggle to make ends meet.
The locals of Tajikistan have many sad tales to tell and tough times to see through at the moment. Take the story of Bibisoro Sayiddova, a mother of five, now desperately trying to find a way to feed her children after her husband has stopped receiving his wages in Russia. Her husband is currently working as a loader of dry fruit sacks in Moscow without any promise of payments.
The troubled mother of five said “Sometimes I cry when the kids don’t have socks or coats,” commenting on her husbands job she said “We’re still hoping he’ll get paid.”
The global financial crisis that has managed to jolt the world’s strongest economies is now starting to take its toll on the poorer nations. The very first to feel the impact of the economic crunch are labor migrants. Such people work in the developed lands with families to support in their underdeveloped home country. With their employers unable to pay them their wages they have families starving back home.
The influx of remittances has slowed down since the fall season this year. This decline has come after years of substantial growth. The gradual slow down is expected to take on a snowball effect in the year 2009 when the economic crisis comes into full bloom.
Mexico is another country that is beginning to suffer from the impacts of economic downturn. The regions of North Africa and the Middle East are expected to be amongst the nations that will be severely impacted by the crisis in the year 2009. The slowdown in Europe and the Persian Gulf is going to have a major impact on these regions.
A senior economist of the World Bank was recorded as saying “There’s definitely a serious moderation in the growth of remittances,” For countries like Tajikistan that are heavily dependant on remittances the future paints a very grim picture.