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China's Triple Whammy: Will it Matter? »

Posted by: universal12 2 years, 6 months ago

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China delivered a three-combo punch in order to rein in their economy. All three moves, when looked at separately, will have an ever so slight effect on the economy. But pushing all three through on the same day may deliver an impact....

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universal12

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Comments: 63

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JustCallMeV
May 25, 2007, 11:21 a.m.
Good article. China is setting at the crossroads. It may be a little early to tell which side of the fence it falls.
-V-
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Radiofreeeuropa
May 25, 2007, 1:06 p.m.
We wait and see, China's had it's cake and ate it too, for quite some time now.
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populist
May 25, 2007, 2:56 p.m.
that's brilliant. you are the smartest-est. ever.
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schillinfl1
May 25, 2007, 1:10 p.m.
China will have to raise rates....We're looking for every excuse to lower them.
This spells trouble for the US Economy.
The tail is wagging the dog.
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Obaku
May 25, 2007, 2:26 p.m.
In 1929, it was the crash of the U.S. stock market that set off a worldwide depression. Europe was the big dog then.
This time it will be China that tumbles first.
Ever seen a big crash in a bike race? All it takes is one rider to wobble, that jostles a couple more riders, and then the whole pack is eating asphalt.
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truthiness
May 25, 2007, 6:46 p.m.
I better with theory than hard numbers, but it looks to me like china is trying to encourage its people to save rather than consume. (something which bush complained baout in his last press conference)
from their point of view this is probably a good idea. their economy is rapidly expanding, which is usually followed by a sudden correction. if they have been in the habit of saving money, such a correction wont have as negative an impact on their economy as it tends to do to us.
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Reignman
May 25, 2007, 7:37 p.m.
I will say this China is becoming a heavyweight!!! I dont know how much we can trust them or not, but there military is very capable, there missles, there strategic weaponory!!! They are sneaking up on us and on the world, Im just left to wonder what their intentions are in the future!!! Humm maybe having a STRONG MILITARY isnt such a bad idea afterall... China really doesnt have a favorable view of the U.S.A.. Could get very interesting.....
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Dionys
May 25, 2007, 8:03 p.m.
China doesn't have a favorable view of the US, they engage in "terrorism," oppression within their country, relocate hundreds of thousands of Tibetans (not to mention having killed millions), don't have a democratic government (perhaps on the surface it looks like one), regularly engage in torture, &c..
How come we're in Iraq and China's our favored trading partner. Hypocracy at its best (or worst).
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Reignman
May 25, 2007, 9 p.m.
Tehran, we can be trusted as a nation, as long as we finish and complete what we start.. NOT LEAVING THINGS A MESS!!! Since when are we at odd with oil with China, Id like to see any credible source making such claims!! As for who does like us nowadays.. Look over in Frances direction!!! Look at whom they elected and what his words were about America.... Beyond favorable view of the United States if you ask me.... not to mention Australia, England, Italy, Spain.. Just a few though...
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canadianrancher57
May 25, 2007, 9:32 p.m.
If the wealth is being shared by everyone in China it will be hard to slow down their economoy given the size of the population. Most of the Chinese that move to other parts of the world have a good concept of money but time will tell if the young generation that makes up a large part of the population will be as carefull with their spending, they are playing catchup on so many parts of their economy that they may have caused a real overheating in it, business spending may moderate but consumer spending is likely to grow as people have a bit of free income.
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spikecwc
May 25, 2007, 10:10 p.m.
Anybody here actually know what an "overnight rate" is?
And if so, what is its significance?
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evelyna
May 25, 2007, 11:09 p.m.
I saw some of their clothing in a dept. store. It looked like the waist bands on skirts had become unraveled and the blouses were unraveling.
This even before they were taken home and laundered. The tags said they were made in china. Well, isn't everything now?
I want durable clothes that will at least last the season.
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Aotearoa
May 26, 2007, 5:17 a.m.
China and America has this love hate relationship that's puzzling in a way . You'v got one side claiming to be the leader of democrazy ( government by the people for the people)and then you have the other country claiming to have a people's government for the people ( ofcourse we know they aren't ) China is still occupying Tibet . Their government is still ruthlessly suppressing political dissent and religion...And then we have the great pusher of equal rights and freedom looking the other way while all this is going on. I guess when the almighty dollar flashes, all this so called ethical and moral thinking gets flush down the lu . If China's military build up becomes a world threat to peace and stability then we can all thank America for funding their war machine.
Leve leva e malanga kae tau
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procyon
May 26, 2007, 8:31 a.m.
Chinese government is called 'The Company'by many Chinese, because it controls who works where, and who buys what.
Today the willingness of China to let the Chinese become consumers is a good barometer of that nation heading for a peactime or wartime footing.
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dunkirk
May 26, 2007, 3:26 p.m.
THe Chinese are vaery calculating. THey are set on world domination much like PNAC, the difference is they are using economic means to achieve their goal vs invading countries. I don;t think the effect of a collapsing economy will hurt the Chinese as much as people think, in fact it wouldn;t surprise me to see them aim for that when the cards are right. Why continue to buy our debt as they are doing, for the return on investment? I dont think they look at it in terms of that but rather what they can accomplish with the debt in terms of leverage on us. We keep looking at the effects on China in terms of how we look at the effect on US, I think that may be a comparison of apples and oranges.
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Aotearoa
May 30, 2007, 2:48 a.m.
The Chinese government has tight control of everything from the what is very important to anything thats less important. That is how they can control everything. The government owns the land and all the natural resources in it , they can kick you to the curb when ever they want and you can't do anything about it because their judiciary system is so screwed up that before you go to trial they already have a verdict. There's no such thing as a nationally recognised law, they control demonstrations ( meaning they'll allow demonstrations if it's against a foreign country; US and Japan)and the government will put you in your grave if it's against any state departments. So while america is wasting its resources on bullying other countries China is slowly but surely working towards the throne. If America does not stop feeding the dragon , the dragon may end up biting the hands that feeds.
Leve leva e malanga kae tau