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03-05-2009, 11:05 AM | #1 |
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Chinese Stimulous Package
Hi Everyone
It was interesting to see the DOW rally yesterday because of a possible Chinese stimulous package. George Green predicted this, to the day, however he gave a different reason. It will be interesting to see where the Chinese government will get its' money from. Could it be by selling US treasury bonds? That would simply cripple the US. Let's sit back and see what happens. Best regards, Steve |
03-05-2009, 11:42 AM | #2 |
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Re: Chinese Stimulous Package
I thought the rally was from the long awaited announcement of the new world order. The NWO is out of the bag now and on CNN.
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03-05-2009, 04:17 PM | #3 |
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Re: Chinese Stimulous Package
More empty statements?
No second stimulus plan for China Thursday, 5 March 2009 15:46 The Chinese prime minister has said the country is facing unprecedented difficulties in the face of the global financial crisis. However, Wen Jiabao said the government was still aiming for 8% growth this year backed by a massive stimulus package. International stock markets had rallied strongly yesterday on rumours that Prime Minister Wen Jiabao would unveil a second stimulus package in his address to the National People's Congress. While no second stimulus plan was forthcoming, he did give further details of the €470 billion package that China is is investing to try to make up for the fall in its exports. Wen's assessment of the situation was blunt. The global crisis continues to spread and get worse he said, and demand in continuing to shrink. But he said China would ride out the recession, and repeated the country's target of 8% economic growth. That is the minimum the leadership thinks is needed to avoid social unrest because of unemployment. Most of China's stimulus package will focus on infrastructure but there is also an increase in social spending to try to persuade the Chinese public to spend rather than save. Source: http://www.rte.ie/business/2009/0305/china.html China targets 8% growth despite crisis By Geoff Dyer in Beijing Published: March 5 2009 02:09 | Last updated: March 5 2009 12:43 China will meet its goal of 8 per cent economic growth this year, Premier Wen Jiabao said on Thursday, although he did not outline any new spending proposals to revive the economy. In his annual “work report” to the National People’s Congress in Beijing, Mr Wen said that the global financial crisis was deepening but that the goal of 8 per cent growth, which has been an unofficial target for months, was still realistic. Need to subscribe to see rest of article: http://www.ft.com/cms/s/47bce284-092...3Dchannel_page China's stimulus plan aims to get poor farmers spending China's prime minister is to set out plans for a massive stimulus intended to prompt its hundreds of millions of poor farmers to spend more money. By Richard Spencer and Peter Foster in Beijing Last Updated: 9:59PM GMT 04 Mar 2009 Excerpt: Arthur Kroeber, who runs the Dragonomics economic research consultancy in Beijing, said he doubted a doubling of the stimulus package would be announced immediately. But he said the decline in exports and the property market made a boost inevitable if the government wanted to keep its target of eight per cent growth this year. He estimated that health spending was set to rise by about 30 per cent a year for three years, but cautioned that it would take three or four years to see any effect on consumer confidence. "This is a long-term effect," he said. Comlete Article: http://www.telegraph.co.uk/finance/f...-spending.html |
03-15-2009, 08:27 AM | #4 | ||
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China’s Premier Wen ‘Worried’ on Safety of Treasuries
China’s Premier Wen ‘Worried’ on Safety of Treasuries
March 13 (Bloomberg) -- China, the U.S. government’s largest creditor, is “worried” about its holdings of Treasuries and wants assurances that the investment is safe, Premier Wen Jiabao said. “We have lent a huge amount of money to the United States,” Wen said at a press briefing in Beijing today. “I request the U.S. to maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.” White House National Economic Council Director Lawrence Summers, asked about Wen’s remarks, said overseas “confidence” in Treasuries would be hurt without the administration’s steps to end the economy’s decline. President Barack Obama is relying on China to sustain buying of Treasuries amid record amounts of debt sales to fund a $787 billion stimulus package. “China’s purchases of American debt have been one of the few bolts keeping the wheels on the global economy,” said Phil Deans, a professor of international affairs at Temple University in Tokyo. “If China stops buying, where does Obama’s borrowing to fund his stimulus come from?” Article continues: http://www.bloomberg.com/apps/news?p...zoY&refer=home Karl Denninger response to above article: Blog and charts at: http://market-ticker.denninger.net/a...009/03/12.html Excerpts: Quote:
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Last edited by peaceandlove; 03-15-2009 at 05:51 PM. |
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03-15-2009, 10:20 AM | #5 |
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U.S. Insists China Fears Over Debt Unfounded
U.S. Insists China Fears Over Debt Unfounded
MARCH 14, 2009 By ANDREW BATSON and ANDREW BROWNE in Beijing and MICHAEL M. PHILLIPS in Washington The Obama administration rejected China's concerns that its vast holdings of U.S. assets might be unsafe, in an unusual diplomatic exchange that underscored the global importance and the potential fragility of the Sino-U.S. economic relationship. In a coordinated response to blunt comments from Chinese Premier Wen Jiabao, White House officials said Friday that Mr. Obama intends to return the country to fiscal prudence once the crisis passes. "There's no safer investment in the world than in the United States," said presidential spokesman Robert Gibbs. Article continues: http://www.campaignforliberty.com/wire.php?view=3370 |
03-15-2009, 10:39 AM | #6 |
I dont need a label !
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Re: U.S. Insists China Fears Over Debt Unfounded
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03-15-2009, 01:18 PM | #7 |
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Re: Chinese Stimulous Package
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03-15-2009, 04:47 PM | #8 |
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Re: Chinese Stimulous Package
Chinese Stimulous = Acupuncture, LOL!
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03-23-2009, 01:16 AM | #9 |
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Foreign Capital Flees the U.S.
Foreign Capital Flees the U.S.
MARCH 17, 2009 Wall Street Journal Outflow Hits Record $148.9 Billion as China Reloads Foreigners withdrew funds from U.S. assets in record amounts in January, but China continued to add to its stockpile of U.S. government debt. Already the largest foreign creditor to the U.S. government, China raised its Treasury holdings another $12.2 billion in January, taking its total holdings to $739.6 billion, according to the latest data from the Treasury Department released Monday. China held $492 billion in Treasurys in January 2008. Foreigners sold a net $60.9 billion in long-dated U.S. securities in January, after buying $24.3 billion in December. Including changes in banks' dollar holdings, short-term securities and nonmarket transactions, net foreign ... For complete article a person needs to subscribe: http://online.wsj.com/article/SB123720924692940901.html World Bank Lowers Its Forecast for Growth in China New York Times By BETTINA WASSENER Published: March 19, 2009 Exports, like motorbikes from a factory in southeast China, have driven the nation’s growth. Some economists say new domestic demand will help China weather the global downturn HONG KONG — The World Bank lowered its forecast for economic growth in China on Wednesday to 6.5 percent in 2009, reflecting the influence of the global slowdown. The figure, down from the bank’s earlier forecast of 7.5 percent growth, is well below the 8 percent projected by the Chinese government for its market, the fastest-growing major economy. It is more in line with what many independent economists expect for China, which has the world’s third-largest economy after the United States and Japan. China’s banks have been largely unscathed by the international financial turmoil, and the authorities still have plenty of leeway to enact additional stimulus measures on top of steps already announced by Beijing. Recent economic data has shown, however, that exports — a significant factor behind China’s stellar growth — have fallen sharply. The Chinese prime minister, Wen Jiabao, called on Wednesday for rapid adoption of policies meant to stimulate growth, saying “big difficulties” continued to confront the nation, Reuters reported. Some industrial sectors and geographical areas were improving, Mr. Wen said at a regular meeting of the cabinet, according to the central government’s Web site. But, he added, the government should waste no time in starting stimulus measures. In its quarterly review of China, the World Bank stressed that the country’s economy was holding up relatively well in the face of the most severe global downturn in decades. “China is a relative bright spot in an otherwise gloomy global economy,” the World Bank’s country director for China, David Dollar, said in a statement Wednesday, adding that the bank still expected China to continue to outgrow most other countries. The World Bank also echoed what many other China watchers were saying: that greater domestic consumption and a reduced reliance on exports were crucial to China’s long-term growth prospects. Only 5 of 12 economists polled by Reuters say they think the government’s 8 percent goal is achievable; the average expectation is for growth of 7.8 percent. The Reuters poll, published Wednesday, also found that economists expect India, Indonesia and the Philippines to be the only other emerging Asian economies to grow this year. Worst hit in the region will be Singapore and Taiwan, which are both expected to shrink 4.9 percent, according to the poll. Despite Wednesday’s revision, the World Bank’s comments on China also reflect a broad consensus that the country is better placed than many others to get through the downturn relatively well — even if a tangible recovery remains some way off. This has also been reflected in China’s stock market — one of the world’s best performers so far this year. While most indexes around the world have fallen more than 10 percent so far this year and the Dow Jones industrial average is down 15.7 percent, the Shanghai stock exchange is up 22 percent since Jan. 1, and added a further 0.3 percent on Wednesday. Jonathan Garner, chief equity strategist for Asian and emerging markets at Morgan Stanley, speaking to reporters in Hong Kong on Tuesday, said he believed much of emerging Asia — outside Japan, which is in a recession — was better positioned than other regions of the world, and that stock markets here might have bottomed out last October. By contrast, the market in the United States “could still see new lows before it troughs,” he said. Source: http://www.nytimes.com/2009/03/19/bu...hina.html?_r=1 China’s Stimulus Spending to Help Growth Reach Target By Irene Shen March 22 (Bloomberg) -- China’s stimulus spending may add as much as 1.9 percentage points to economic expansion and help the government achieve its growth target this year, according to the State Council’s research group. “China has the ability to become the first in the world to step out of the crisis and keep stable growth for the mid and long term,” Zhang Yutai, director of the Development Research Center of the State Council, said in a live broadcast from the China Development Forum in Beijing today. Vice Premier Li Keqiang reaffirmed China’s goal of 8 percent growth at today’s forum, saying some industries “have seen signs of recovery.” China is targeting expansion in 2009 even as economies from the U.S. to Japan contract. The nation’s economy is showing “early signs” of stabilizing as government-backed investment counters a slump in exports, the World Bank said March 18. Vice Premier Li Keqiang reaffirmed China’s goal of 8 percent growth at today’s forum, saying some industries “have seen signs of recovery.” China is targeting expansion in 2009 even as economies from the U.S. to Japan contract. The nation’s economy is showing “early signs” of stabilizing as government-backed investment counters a slump in exports, the World Bank said March 18. Investment in China rose 26.5 percent in the first two months of 2009 and bank loans quadrupled in February, indications the government’s 4 trillion yuan ($585 billion) stimulus plan is starting to feed into the economy. Article continues: http://www.campaignforliberty.com/wire.php?view=3561 |
03-23-2009, 01:19 AM | #10 |
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Re: Chinese Stimulous Package
Now, why is it that I think China owns us already?
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03-23-2009, 01:10 PM | #11 | |
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Re: China’s Premier Wen ‘Worried’ on Safety of Treasuries
Hi peaceandlove,
If Mr. Wen is voicing his worries in the public eye, imagine what is being said behind closed doors. Best regards, Steve Quote:
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