Discussion in 'Economy' started by Truthmatters, Jun 7, 2012.
U.S. stocks gain traction upon news of China?s stimulus plans - San Antonio Business Journal
U.S. stocks rebounded on Thursday after China cut interest rates to support the United States’ economy, MarketWatch reported.
China’s rate cut is the “first since 2008 as China tries to stimulate growth,” noted Fred Dickson, chief investment strategist at Davidson Cos., as quoted by MarketWatch.
We can read. No need for a thread on something we already know.
Chinese economic stimulus program - Wikipedia, the free encyclopedia
As of November 15, 2008, Beijing standard time, it was revealed that the central government would only provide 1.2 trillion yuan of funds. The rest of the funds will be reallocated from the budget of provincial and local governments.
Chinese banking officials were reportedly considering establishing a fund worth between 600 billion and 800 billion yuan to purchase domestic shares listed on the Shanghai Stock Exchange, particularly those in the Shanghai Composite, in the event the Shanghai Index fell to 1,500 points.
On March 6, 2009, China's National Development and Reform Commission announced a revision of the stimulus and published a breakdown of how the funds would be distributed.
Public infrastructure development took up the biggest portion – 1.5-trillion yuan, or nearly 38% of the total package. The projects lined up include railway, road, irrigation, and airport construction.
The second largest allocation – one trillion yuan – went to reconstruction works in regions hit by the 8-magnitude Sichuan earthquake last May; that was followed by funding for social welfare plans, including the construction of low-cost housing, rehabilitation of slums, and other social safety net projects.
Rural development and technology advancement programs shared the same amount of allocation – at 370 billion yuan each. Rural projects in the pipeline included building public amenities, resettling nomads, supporting agriculture works, and providing safe drinking water.
Technology advancement mainly targeted at upgrading the Chinese industrial sector, gearing towards high-end production to move away from the current export-oriented and labor-intensive mode of growth. This was in line with the government's latest Blueprint for revitalizing 10 selected industries.
To ensure sustainable development, the Chinese government also allocated some 210 billion yuan, or 5.3% of the stimulus package for promoting energy saving and gas emission cuts, and environmental engineering projects.
Finally, 150 billion yuan was allocated for educational, cultural and family planning purposes.
One year later, these programs seem to have been even more successful than expected, so that on November 4, 2009, the World Bank group enhanced its "prognosis" of the Chinese BIP, by +1.2 %, to a value of +8.4 %.
China's economic growth was sustained by the economic stimulus and in addition, assisted neighboring countries with the economic recovery in 2010. Chinese economic growth was around 10 percent even as its European and North American economies were slowing. The stimulus provided funds for infrastructure projects and housing developments. Some were used to assist local governments to lend money to state-owned companies to develop housing estates, roads and bridges. This will drive employment in areas of manufacturing, steel, cement and other sectors of the economy. There is also a risk of the stimulus generating inflation and a property bubble.
Due to the success of the economic stimulus plan, the central government has tightened regulation in the financial system on banks to curb lending amid fears of a property bubble which could put a dent on economic recovery.
In 2011 it was revealed that as much as 20% of the loans under the program may be written off
Now you know why China has done so well over these years.
They did a stimulus plan
Oh...I get it...we should be more like China...the worst human rights violator in modern societies.
This point is even too stupid for you
And BTW - China isn't doing well oh clueless one.
They have more poverty in their ranks than any other industrialized nation.
You are using China as an example of doing the right thing....this is priceless.
this is about the effects of economic policy NOT about chinas civil rights
Hey idiot...they are connected.
Wow...this is hilarious...just when I think your lack of depth of knowledge can't be topped...in comes this thread.
Shall we also mirror their wage structure?
Separate names with a comma.