The Chinese Stimulus

President Obama is staking recovery on $787 billion in stimulus spending, but already America is benefitting from a similar decision by the Chinese government to pump cash into their economy. Large-scale infrastructure projects are getting under way in China as part of its own $585 billion spending plan and the sudden flow of cash is spreading to American companies like Caterpillar Inc, who said sales of excavators have reached record heights in recent months after plummeting earlier. "The hope is that China would become an engine of growth to drive the global economy out of this severe recession—much as the U.S. was the engine of growth that drove the global economy after the dot-com collapse," one economists, Daniel Meckstroth, told the Wall Street Journal.