Lorenzo,I can't see how you justify saying that China must be "stood out" of what you rightly call the coming financial collapse of some Asian economies.China does have a lot of reserves in foreign currency but the $US part of it is declining in value and seems set to continue in that direction.I'm not so sure that other currencies are too secure either.
In addition the value of Chinese exports is set to decline as the main buyers of their goods enter what seems to be an inevitable depression.
I am not very knowledgeable about these matters.I'm sure somebody has a contrary view.However,I've been around long enough to have upgraded my bullshit detectors to a fairly high level.When I read all these enthusiastic reports about China's miraculous growth presented as the conventional wisdom I tend to step back a bit and try to examine the underlying factors.What I see makes me suspect that China's economy is,at bottom,extremely fragile.
On the specific suject of Jerome's article it would appear that there needs to be some serious efforts,apart from price,to cut demand in the West.What are the odds on rationing?