China Announces $586 Billion Stimulus Plan

[phirang]

Re: China Announces $586 Billion Stimulus Plan

brand new roads and bridges and... no traffic! :eek:

i really don't see a good ending to this. We need a "global" solution, a new financial order.

[metalman]

Re: China Announces $586 Billion Stimulus Plan

brand new roads and bridges and... no traffic! :eek:

i really don't see a good ending to this. We need a "global" solution, a new financial order.

yes but if the ccp is good at anything... it's planning!

they'll make japanese bureaucrats with their programs 1995 - ??? look like amateurs.

thing is, japan 'recovered' on the back of usa fire econ based demand. china needs a new mama 'cause the usa is going cold turkey into savings mode.

[ASH]

Re: China Announces $586 Billion Stimulus Plan

We need a "global" solution, a new financial order.

We'll probably be left waiting longer than this weekend.

G20 financial summit may become a fittingly inept end to Bush administration.

One of the real problems facing the assembled leaders this weekend will be the sheer range of topics that can and will be discussed. From breathing new life into the Doha trade rounds to looking at how best to regulate global banks, each country has its own agenda.

The UK delegation believes strongly that a new international regulator to monitor the activities of the world's 30 largest banks should be established.

But the French, under Mr Sarkozy, will push for increased government control on lending practices, with a particular focus on cross-border lending, with the French premier last week saying he wants "to change the rules of the game."

For her part, German Chancellor Angela Merkel is taking a more puritanical route, and wants to see hedge funds penalised and an end to big bonuses for bankers. And that's just three countries.

[touchring]

Re: China Announces $586 Billion Stimulus Plan

yes but if the ccp is good at anything... it's planning!

they'll make japanese bureaucrats with their programs 1995 - ??? look like amateurs.

thing is, japan 'recovered' on the back of usa fire econ based demand. china needs a new mama 'cause the usa is going cold turkey into savings mode.

The solution is to get Chinese corporations to start making wide body jets, more high speed trains, cars, and software. The Chinese authorities have started forcing low end producers like toy makers to go out of business by raising minimum wage and business costs. In fact, reports say that half of all toy companies have gone bust.

Contrary to common belief, the CCP will not hesitate to create unemployment if that is needed to free up resources and reform the economy.

[Slimprofits]

Re: China Announces $586 Billion Stimulus Plan

Both from ChinaStakes.com, November 11th and 10th respectively:

Beijing: 100 Billion Yuan Must Be Spent in 110 Days

Yesterday the NDRC held an urgent meeting to allocate investment for the fourth quarter of up to 100 billion yuan, cash that has been allocated to 11 departments, including the Ministry of Agriculture, the Ministry of Water Resources, the Ministry of Housing and Urban-Rural Development, the Ministry of Environmental Protection, and the Ministry of Health. The State Council is requiring these funds to be invested in projects before the NPC and CPPCC sessions next spring, so in the remaining 110 days, government departments have to seize every moment to put the government’s investment to work.

It is reported that about half the total will go to the areas of agriculture, forestry, and water resources, while affordable housing, and environmental protection will get the remainder. The Ministry of Transport has also received 10 billion yuan from the State Council.

One attending the meeting said some projects were already under construction, and would soon begin operations. Some others originally planned for 2009 have been rescheduled to begin this year and have already been registered with the NDRC, so they will be launched without much difficulty.

Gov't Offers Big Stimulus Package, Could Get Even Bigger

--Earthquake affected areas: 1 trillion yuan.
--Investment on railway construction: 2 trillion yuan. Last month alone 11 new railway projects were launched
--Investment in road and port construction: Transportation departments are formulating a 5 trillion yuan investment plan for the next three to five years.
--Tax deduction: The VAT reform, which is to be implemented from January 1, 2009, will cut taxes up to 300 billion yuan total for companies
--Pension insurance: The government may use several billion yuan to fill empty individual accounts.
--Medical system reform: Relevant departments are now asking for the public’s opinions. If the reform plan is approved, more funds, perhaps several billion yuan, will be spent every year.
--Besides, the government may also invest in social housing and rural development projects.

As announced, the 4 trillion plan covers only the next two years, until the end of 2010.

[..]

To accelerate the speed of construction, it was decided at the meeting that the central government invest 100 billion yuan during the present quarter to stimulate local investment. 20 billion yuan of Sichuan

The State Council plans to launch ten measures as soon as possible to further expand internal demand and promote economic growth...

[touchring]

Re: China Announces $586 Billion Stimulus Plan

Knowing chinese culture, they are putting out the message there's gona to be less money for US govt bonds.