America gets the flu, China goes into a coma

[DCBob]

China slashes interest rates as panic spreads
By Malcolm Moore in Shanghai
Last Updated: 12:48PM GMT 26 Nov 2008

The People's Bank of China cut interest rates by more than 1pc point as the economy crumbles and millions of jobs are predicted to go ahead of Christmas. The move came just one day after the World Bank predicted that China would grow by 7.5pc next year. The level of growth may appear robust by Western standards, but it would represent the slowest economic expansion in China for the last two decades. It is also perilously close to the 7pc minimum level of growth that Chinese economists believe is necessary in order to create enough jobs for the 6m university graduates who will enter the jobs market next year. It is the fourth interest rate cut from the Chinese central bank in the last ten weeks as the government desperately battles an evident economic collapse. "China is out to save itself here," said Patrick Bennett, an analyst with Societe Generale in Hong Kong.

more: http://www.telegraph.co.uk/news/worldnews/asia/china/3525052/China-slashes-interest-rates-as-panic-spreads.html
========

The US is likely to emerge from this financial crisis in much better shape than most other nations, including China. However, I am still concerned about the massive US debt the Chinese hold. It is not a good situation for us or them. We need to buy that debt back as soon as possible. Hopefully the Obama administration will deal with this issue at some point.

[msongs]

1. merry Chinese Xmas nt

[JVS]

2. USA USA USA USA USA USA!

:headbang:

[DCBob]

3. You need some patriotic flag waving...

:patriot::patriot::patriot::patriot:
:patriot::patriot::patriot::patriot:
:patriot::patriot::patriot::patriot:
:patriot::patriot::patriot::patriot:
:patriot::patriot::patriot::patriot:
:patriot::patriot::patriot::patriot:
:patriot::patriot::patriot::patriot:

[gorfle]

4. One wonders of the strategic importance of this.

One wonders if this wasn't a hedge that allowed US policy to proceed unworried about Chinese-held US debt. If we go down their debt holdings disappear.

[Colobo]

5. I have to say I'm glad they won't benefit from our crisis.

[theoldman]

6. Sorry but I disagree.

China's economy is no where near in as bad a shape as ours. Their only problem is jobs. We as a nation and individuals are in dept up to our ears. We will have to borrow billions from them to get our economy going again. They already have a good plan to boost their economy. We still have to wait until Obama takes office.

[DCBob]

9. Yes, but jobs may be the problem. There is massive influx of rural folks into the cities now.

If they don't find jobs there will be chaos.

[Lerrad]

7. LOL!!! - China's economy will never collapse.

What a joke.

China is the RICHEST nation on earth, it will never happen. The US and many other countries are so far in debt to the Chinese that they own us.

How can the economy of a country (communist country I might add) that owns nearly all the worlds gold collapse?

They call in their debt and the rest of the world as we know it is over.

[Deja Q]

8. Which also includes their own country. Once again: Symbiosis.

[Lerrad]

11. Well China may live off the US, but do you think China gives a rats ass about it's people?

Think again.

[Idealism]

15. Unemployment to China will lead to rebellion

Rebellion backed by Democratic states. They cannot let the rank and file in their urban areas become restless to the point of a revolution, China is precarious enough as is between civil liberties and economic freedoms.

[DCBob]

10. The Chinese economy is precarious. They have to keep growing at high rates or

or they face massive unemployment which could lead to instability. The debt thing is scary. We have to buy that debt back. But the Chinese know they need us as much or more than we need them. Seems like a stalemate.

[Lerrad]

12. China has survived for hundreds of years with out us.

They don't need us.

[DCBob]

13. Survival and maintaining a world class thriving economy are two different things.

Without us their rapid growth stops.

[Lerrad]

14. It will not stop, but...

... it will slow things down. As I said they own nearly all the worlds gold, so their economy will never collapse, this is a joke. They will be able to keep their people going for a long time to come, if they want too.

China has been in an economic war with the US for a long time now. They are masters at manipulating world markets such as the steel industry, and manipulating their currency. They want to bring us down, and they have all the time in the world to do it. The real war is with, and has been, with China for a long time. The only problem is that the Bush administration was to stupid to fight back.

[NewJeffCT]

24. Where did you get your gold statistics?

The US & Germany have way more gold than China, which ranks #10 in gold holdings by country in the statistics I just looked up, barely ahead of Taiwan. In fact, there are articles online saying that China should increase its gold holdings from its very low percentage it has now.

http://goldismoney.info/forums/archive/index.php/t-100502.html

[NYC_SKP]

21. And just how sustainable is this growth?

I'd argue not at all, uninhibited growth, or anything but smart growth, and sooner or later, "boom", "crash".

It may be better to find some middle ground, maybe survival is the better strategy in the long term.

[Strelnikov_]

22. It's not. China is a train wreck waiting to happen.

They are still grossly overpopulated, in a world that where Liebig's law of the minimum is about to kick in.

[Hannah Bell]

16. Same way the US (creditor) did in the 30s.

Oh, PS: those 'riches' in China? Large chunks of them don't belong to the Chinese.

[Dreamer Tatum]

20. Hah

Once again, CHINA CANNOT "CALL" ITS DEBT. JESUS H FUCKING CHRIST ON A POGO STICK, WHEN WILL PEOPLE ACCEPT THAT BASIC FACT?

Can you show me how China owns most of the world's gold? Is gold edible, in any case?

China's economy is based on exports, for which they accept and hold foreign currency. If those foreign currencies become worthless, ahem, SO DO CHINA'S HOLDINGS OF FOREIGN CURRENCIES. And if the orders to Chinese factories dry up, so does China's economy. Period. Paragraph. Dollars, won, reals, pesos, pounds sterling, and dinars cannot be eaten, my friend.

There were those who thought the Titanic couldn't sink, too, but it did.

[Lerrad]

23. Hah...

China's reserves already far exceed what the country needs to protect its economy from global financial shocks. No one knows exacly how much China has in reserves but it is known that the total is at least $1 trillion, which could pay off China's total foreign debt at least six times over.

Pocket Change!

[Dreamer Tatum]

25. Meanwhile it struggles to feed and transport its citizens

What is the nutritional content of paper?

[FarCenter]

17. China may suffer greatly, but the US is more likely to collapse

The Chinese leadership prevented a collapse of their government and economy in the 1990s by taking severe measures to maintain order.

As a result, they have functioning Communist Party that can act decisively to require sacrifice by their citizens while at the same time maintaining distribution of food, housing, medicine and other essentials to keep the population from real destitution.

This contrasts favorably with the collapse of the Soviet Union, where economic restructuring and political restructuring were attempted simultaneously. This has been demonstrated not to work.

If the economic situation becomes really dire, the US collapse will resemble the Soviet Union more than China.

[Neshanic]

18. Your last paragraph is just bizzare. The disconnect is amazing.

[DCBob]

19. Please explain your amazement.