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China is 3 - 6 months ahead of the US in recovery

hypocritexposer

Well-known member
I asked him about the stimulus package and he said that China will recover before us because they put a huge stimulus plan into effect in the fall whereas because of the elections we did not act when we should have and thus the bottom is still 3 - 6 months off for the US. He said that if you compare the size of China's stimulus package to their GDP, the US stimulus package is relatively small.

You do know that China is a communist country? There methods work in the short term because of that?

When everything is government run, of course a bailout plan, will revitalize their economy.

And yes I read the article.
 

aplusmnt

Well-known member
reader (the Second) said:
I had lunch with my cousin and her husband. He's very knowledgeable about economics (former economics professor who retired at 40 because he was able to). I asked him about the stimulus package and he said that China will recover before us because they put a huge stimulus plan into effect in the fall whereas because of the elections we did not act when we should have and thus the bottom is still 3 - 6 months off for the US. He said that if you compare the size of China's stimulus package to their GDP, the US stimulus package is relatively small.

I know those of you who think that handing a tax break to the business world will solve our economic problems won't pay attention to this and those who already believe this won't need to hear it but I personally find it comforting to speak with experts and have them confirm that the GOP opposition is either lying or ignorant. His words, not mine. And he's a kind hearted, soft spoken person.

Can you ever write something that does not spew arrogance and put the reader on the defensive from the start? You claim to be so smart and know all these smart people. Surely you are smart enough then to realize the air you give in your writings? :roll:

And for the record us that believe giving tax breaks to businesses also believe in giving them to individuals, which you leave out because it does not serve your sensationalizing point.

If the true goal is Stimulus then please explain how spending money on on a dog park in one town would stimulate the economy in my town vs giving every American on the planet more money back in their checks starting two weeks from the day Obama signed it?

Lower income tax gives every working American more money to spend each week which will stimulate the economy! But problem is liberals like you and Obama do not like that because how will the poor non working people get something? Instead you put more food stamps in the package to help them.

Sounds like this so called expert (which you sure know a lot of) may have lost his job due to being incompetent not because he is rich as you suggest! :roll: Or maybe there is no Cousin and you are thinking on your own, which then makes plenty of sense!
 
A

Anonymous

Guest
reader (the Second) said:
I had lunch with my cousin and her husband. He's very knowledgeable about economics (former economics professor who retired at 40 because he was able to). I asked him about the stimulus package and he said that China will recover before us because they put a huge stimulus plan into effect in the fall whereas because of the elections we did not act when we should have and thus the bottom is still 3 - 6 months off for the US. He said that if you compare the size of China's stimulus package to their GDP, the US stimulus package is relatively small.

I know those of you who think that handing a tax break to the business world will solve our economic problems won't pay attention to this and those who already believe this won't need to hear it but I personally find it comforting to speak with experts and have them confirm that the GOP opposition is either lying or ignorant. His words, not mine. And he's a kind hearted, soft spoken person.

China Unveils $586 Billion Stimulus Plan
Amid Unrest, Package Would Address Social, Political and Economic Concerns

By Ariana Eunjung Cha and Maureen Fan
Washington Post Foreign Service
Monday, November 10, 2008; A01

SHANGHAI, Nov. 9 -- China on Sunday night announced an aggressive $586 billion economic stimulus package, the largest in the country's history, at a time when it is struggling with increasing social unrest due to factory closings and rising unemployment.

In a wide-ranging plan that economists are comparing to the New Deal, the government said it would ease credit restrictions, expand social welfare services and launch an infrastructure spending program that would include the construction of new railways, roads and airports.

The announcement by China's State Council marks a dramatic about-face for the country, which had insisted for months that it was largely unaffected by the increasing economic chaos in the rest of the world and had remained on the sidelines while other nations constructed elaborate bailout plans.

Governments around the world had been watching to see if China would step in and fire the economic engines needed to stave off a global recession. In Brazil, where finance officials from 20 of the world's largest economies convened Sunday, attendees were hopeful the stimulus plan would provide a much-needed jolt.

"It's a huge package. It will have an influence not only on the world economy in supporting demand, but also a lot of influence on the Chinese economy itself, and I think it is good news for correcting imbalances," Dominique Strauss-Kahn, managing director of the International Monetary Fund, told the Reuters news service in Sao Paulo.

David H. McCormick, U.S. undersecretary for international relations at the Treasury Department, called it a "welcome step."

President Hu Jintao is expected to join other world leaders in Washington on Saturday to discuss joint efforts at preventing a deep and prolonged global recession. China's leaders have been saying for months that the best way China can help is to keep its own economy on track.

The stimulus funds, to be used through 2010, represent roughly 15 percent of China's yearly GDP. China last year accounted for 27 percent of global growth, more than any other nation.

The head of China's central bank, Zhou Xiaochuan, said at the Brazil meeting that by increasing domestic consumption, China could help international markets.

The first clear sign that China might be in trouble along with the rest of the world came last month when the country's statistics bureau said its previously white-hot, double-digit economic growth had slowed to 9 percent in the third quarter, its lowest level in five years.

Several measures in the new stimulus program are aimed at segments of the Chinese population, especially those in the countryside, who are facing economic strain. The government promised to launch new initiatives in affordable housing and health care, and to increase efforts to rebuild earthquake-damaged Sichuan province.

The plan appears designed to address social and political concerns as well as economic ones as the Chinese government faces a wave of marches, sit-ins and general unrest triggered by the deteriorating financial environment. Tens of thousands of laid-off workers have protested in recent weeks, forcing government officials to respond with a mixture of pay-offs and crackdowns on leaders of the movements.

Last week, taxi drivers in China's fourth-largest city, Chongqing, staged a violent strike, attacking police vehicles in a demonstration against high fees and fuel shortages.

Jing Ulrich, managing director of China equities for J.P. Morgan, wrote in a research note Sunday that the Chinese economy is facing "the most serious economic headwinds since the Asian financial crisis" and that "the government has every political incentive to boost spending in priority programs."

"Beijing's new policy drive of upgrading infrastructure, rural land reforms, and expansion of social welfare is akin to a 'New Deal' with Chinese characteristics," Ulrich wrote after the stimulus announcement.

Economists say that stimulating China's economy may have a positive, but modest, global impact, softening the U.S. recession and global downturn. What's most important, they say, is that China won't become another drag on the world economy.

Exports have fueled much of China's economic growth. The nation is the United States' second-largest trading partner after Canada, though America imports five times as much as it exports to China. In 2007, the United States imported $252.2 billion more than it exported to China. China accounts for 6 percent of world economic output.

"If the Chinese economy gets a little bit self-sustaining and increases imports abroad, then the U.S. can benefit a little bit," said Eswar S. Prasad, an international economics professor at Cornell University.

But Simon Johnson, former chief economist at the IMF and a fellow with the Peterson Institute for International Economics, said the stimulus also contains a worrisome sign. "It also tells you that the Chinese are more worried than we thought and the official growth estimates are too high," he said. The IMF predicts 8.5 percent growth next year for China.

Over the past three months, China's leaders have taken steps large and small to keep the economy stable. Among the more traditional measures are interest rate cuts, a lowering of bank reserve ratio requirements, export tax rebates and an abolition of a stamp tax on stock purchases. It has also embraced some less traditional moves, such as giving subsidies to rural residents to buy things like refrigerators and TV sets in an effort to increase domestic consumption.

However, "the macro-economic policy changes announced on Sunday are one of only a few major shifts during the 30 years since the beginning of reform and opening up in 1978," China's official New China News Agency said.

The details of the plan drew attention to aspects of the Chinese economy that, until recently, appeared to be relatively healthy. Among them is China's banking sector.

The State Council said credit ceilings for commercial banks would be removed to try to channel more loans to rural areas, small enterprises, mergers and acquisitions and other priorities. The change deepens worries that the country may be grappling with a credit crisis of its own that is more serious than previously thought.

This year, as global credit availability dried up, Chinese leaders bragged that the country's banks were among the healthiest lenders in the world, and seemed unconcerned about problems elsewhere.

That attitude has changed dramatically in a matter of weeks. While many of the banks in the West are having problems because of bad debt, China's banks are flush with cash -- about $586 billion is sitting on the balance sheets of the large ones alone -- but they have resisted parting with it.

While the Communist government has the power to order banks to issue loans, that would turn back the clock on 30 years of capitalist-style reforms and could trigger anger from foreign investors in the state-owned banks who own publicly traded shares sold on the Hong Kong Stock Exchange.

However, it's clear that government efforts to encourage the banks to lend have not been successful. The result has been that about 67,000 small businesses fell into bankruptcy in the first half of the year, and now some larger, state-owned companies are feeling the effects as their customers roll back orders.

Fan reported from Hong Kong. Staff writer Zachary Goldfarb in Washington and correspondent Joshua Partlow in Sao Paulo contributed to this report.

That is exactly what all the economists/experts Congress (both Repubs and Dems) have been bringing in to testify have been saying too...

The thing is the majority of the economic experts worldwide agree that the quickest way to fix this Bush Bust- and to bring back some confidence in our financial sector is to pour some massive amounts of money into the economy-get some money moving- and put some strict regulation on the financial community...

I saw Bernanke testifying to Congress- and he said this is a worldwide effort- all the G7 countries, China, Russia and many others are doing Stimulus packages of some type or other...In answering a question to Sen. Tester he said that much of the speed of the recovery will be from how fast and how much we/the world reacts with..
Even the old tightwad conservative Ben Stein is in agreement with the Stimulus and Bailouts- altho he thought the Stimulus should have been bigger....More money- put into the economy faster...

Nobody- but nobody- even Obama agrees with all the projects in the Jobs/Stimulus law-- but at least its putting money back into America- and toward the American people- and not like the past several years of Trillion $ deficit spending burying it all in a foreign sand pile.....

Too bad the arse kissers and bootlickers (I'm not good with big words :p ) on here wouldn't watch a few of those hearings at night rather than listening to the chanting/ranting of Rush and Queen Anne to light up their tin foil antenna's...
What leaders :roll: - a fearmongering paranoid schizo drug addict- and a hatemongering, anorexic Dyke- both playing the gullible to make their fortunes..... :wink:
 

Sandhusker

Well-known member
" majority of the economic experts worldwide "

If you have to make up facts to support your position, you need to reexamine that position.
 
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Anonymous

Guest
Sandhusker said:
" majority of the economic experts worldwide "

If you have to make up facts to support your position, you need to reexamine that position.

Have you been watching any of the hearings :???:
 
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