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Time for China to quit the constrictive policy? [Copy link] 中文

Rank: 8Rank: 8

Post time 2011-12-12 17:51:33 |Display all floors
CPI in Novermber comes down to new low at 4.2% year on year and the PMI under 50, export increase meets pressure. All the factors quoted by analysts as the singals for Chinese policymakers to switch the  helm. The RRR (Reserve ratio rate) lowered for the first time by 50 basis points signal the change of the fiscal poliy. While some worry the aftermaths of the 4 trillion investment during the past 2years still loom the Chinese economy once the policy changes, they will appear again and even worse. The CPI would rocket again and the property prices would rebounce dramatically which have stirred fierce opposition and protest among the low-income and middle classes. Thus the adminstration faces a dilemma to deal with the current situation.

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Rank: 8Rank: 8

Post time 2011-12-12 17:53:47 |Display all floors
Positive fiscal policy and stable monetary policy would be keywords for the upcoming 2012. and 2013 would be harder for Chinese economy as analysist argued.

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Rank: 6Rank: 6

Post time 2011-12-12 20:35:01 |Display all floors
Economics have become more and more complicated, when what is needed is to simplify it, regulate it, unregulated economics is a disaster waiting( or not) to happen.
Business hates regulation, but can't be trusted not to abuse the lack of it.
Wealth needs to be limited, no need to have infinite wealth for any person. ( people ARE greedy, some way more than others)
Profit should be shared more equally, it is better to divide after tax profit, company, workers, share holders, evenly with company survival at the top.

Business has a responsibility to make profit, but it should not forget it's workers, loyalty goes both ways.
Employees should not be regarded as an overhead that needs to be reduced to help increase the share price.

Society has an obligation to make sure there are enough jobs, if it can't supply the work it must compensate those people.

I'm a little bit wrong and your a little bit right.
Everyone is entitled to my opinion.

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Rank: 6Rank: 6

Post time 2011-12-12 22:36:35 |Display all floors
Here 4% would be considered high, demanding interest rates increases.

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Rank: 8Rank: 8

Post time 2011-12-13 09:56:25 |Display all floors
Ronny Post time: 2011-12-12 20:35
Economics have become more and more complicated, when what is needed is to simplify it, regulate it, ...

you said an ideal world, the reality tends to be harsh. No one would get compensation once he got jobless. the fairness should be more important in China while the gap between rich and poor turns wider day after day.

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Rank: 6Rank: 6

Post time 2011-12-13 11:41:36 |Display all floors
desperado123 Post time: 2011-12-13 11:56
you said an ideal world, the reality tends to be harsh. No one would get compensation once he ...

well, an ideal world is our aim, the gap is also wider in the west, none of us like it, in Australia the unemployed can get about 800$AUD a month plus medical and subsidised medicine, rent assistance etc, no time limit, though some abuse it, it is better to have it than not, and we don't humiliate people by making them use food stamps, but they must report their job efforts. the system is good but not perfect. our disabled get a pension and if they need it another can get a "carers pension"to look after them at home.
I'm a little bit wrong and your a little bit right.
Everyone is entitled to my opinion.

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Rank: 4

Post time 2011-12-13 13:18:38 |Display all floors
The sharp drop in CPI indicates Beijing’s deflation policies has begun to work. With inflation declining, however, China’s economic growth also saw an obvious slowdown. China’s PMI fell to 49 in November, marking the first decline over almost 3 years. Moreover, affected by renminbi appreciation and euro-zone crisis, China’s exports also fell fast. The pace of economic slowdown is really beyond expectation, keeping stable economic growth has resurfaced as a national concern. The 0.5 percentage point reduction in RRR suggests policymakers are now much more concerned about economic growth. After 2 years tight policies, China has kicked off a new round of Monetary easing, I pray this time they will not go wrong all over again.

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