"China Unveils $586 Billion Economic Stimulus Plan"
"China Unveils $586 Billion Economic Stimulus Plan," see http://www.nytimes.com/2008/11/10/world/asia/10china.html. Part of the article is below. Obviously, China must be hurting a great deal, if they feel the need for such a large stimulus package.
Most of the world, including China and Asia, is hurting about as much if not more than the US is. Because China and much of Asia had very rapid economic growth rates in recent years, their economies had much farther to fall. China's Shanghai SSE Composite Index index has fallen about -72% so far, in it's Cyclical Bear Market since October 2007, see http://finance.yahoo.com/q/ta?s=000001.SS&t=2y&l=off&z=m&q=c&p=&a=&c=.
"SHANGHAI — China on Sunday announced a huge economic stimulus package aimed at bolstering its weakening economy and perhaps helping fight the effects of a global economic slowdown.
In a sweeping move at a time when major projects are being put off around the world, Beijing said it would spend an estimated $586 billion by 2010 on wide array of national infrastructure and social welfare projects, including constructing new railways, subways, airports and rebuilding communities devastated by an earthquake in southwest China in May.
The package, announced by the State Council Sunday evening, is the largest economic stimulus effort ever undertaken by the Chinese government and would amount to about 7 percent of the country’s gross domestic product during each of the next two years.
Beijing also said it was loosening credit and encouraging lending as part of a more “pro-active fiscal policy.”
“Over the past two months, the global financial crisis has been intensifying daily,” the State Council said in its statement. “In expanding investment, we must be fast and heavy-handed.”
The stimulus plan would be enormous for any country, let alone one whose gross domestic product is lower than most other major industrialized countries, at around $3.5 trillion this year.
Earlier this year, the United States Congress passed a $700 billion bailout package in a country with an economy whose size is close to $14 trillion."
.......http://www.JoeFRocks.com/
Most of the world, including China and Asia, is hurting about as much if not more than the US is. Because China and much of Asia had very rapid economic growth rates in recent years, their economies had much farther to fall. China's Shanghai SSE Composite Index index has fallen about -72% so far, in it's Cyclical Bear Market since October 2007, see http://finance.yahoo.com/q/ta?s=000001.SS&t=2y&l=off&z=m&q=c&p=&a=&c=.
"SHANGHAI — China on Sunday announced a huge economic stimulus package aimed at bolstering its weakening economy and perhaps helping fight the effects of a global economic slowdown.
In a sweeping move at a time when major projects are being put off around the world, Beijing said it would spend an estimated $586 billion by 2010 on wide array of national infrastructure and social welfare projects, including constructing new railways, subways, airports and rebuilding communities devastated by an earthquake in southwest China in May.
The package, announced by the State Council Sunday evening, is the largest economic stimulus effort ever undertaken by the Chinese government and would amount to about 7 percent of the country’s gross domestic product during each of the next two years.
Beijing also said it was loosening credit and encouraging lending as part of a more “pro-active fiscal policy.”
“Over the past two months, the global financial crisis has been intensifying daily,” the State Council said in its statement. “In expanding investment, we must be fast and heavy-handed.”
The stimulus plan would be enormous for any country, let alone one whose gross domestic product is lower than most other major industrialized countries, at around $3.5 trillion this year.
Earlier this year, the United States Congress passed a $700 billion bailout package in a country with an economy whose size is close to $14 trillion."
.......http://www.JoeFRocks.com/
posted by Joe Ferrazzano at
12:22 PM
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