Zachary Karabell sees two winners in the new economy: China and cash. An excerpt:
Then there is China. Yes, the balance of power at the G-20 summit shifted toward Russia, Brazil and its hundreds of billions in reserves, Saudi Arabia, and a rich though still economically stagnant Japan. But China remains in a league of its own.
With $2 trillion in central-bank reserves alone, China is cash-rich and almost debt-free. That is true not just for the government but for many individuals. Because there is no mature bond market and the currency remains unconvertible, individuals in China have a savings rate approaching 50%.