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BEIJING (AP) ”” China increased interest rates Saturday for the second time in little more than two months as the government steps up its fight against rising inflation that could threaten political stability.
Those worries about inflation in the world's second-biggest economy meant the move by The People's Bank of China had been expected by the end of the year or early next year.
Effective from Sunday, the benchmark 1-year lending rate will climb 25 basis points to 5.81 percent, while the 1-year deposit rate will go up the same amount to 2.75 percent, the central bank said on its website.
China's real interest rates are deep in negative territory. The one-year benchmark deposit rate is only 2.75 percent after the latest climb, well below November's inflation of 5.1 percent, highlighting the risk that price expectations may spin out of control.
BEIJING””Beijing's municipal government Thursday unveiled sweeping measures to curtail the number of cars sold in the city next year, in a bid to ease traffic chaos that could prompt similar moves in other Chinese cities and deepen an expected slowdown for the auto industry.
Beijing will limit the issuance of new car and microvan license plates in the city to 240,000 in 2011, about one-third of this year's figure, and only registered Beijing residents will be able to obtain one. Cars that don't have Beijing license plates will be barred from entering the main city area during rush hour.
Yale Zhang, an independent auto analyst, said the measures were more stringent than the market had expected. "Auto makers may have to adjust their production and sales plans next year," he said.
http://www.bloomberg.com/news/2011-...since-lehman-to-curb-prices-china-credit.htmlWhile the seven-day repo rate has dropped 320 basis points, or 3.20 percentage points, from a three-year high of 6.34 percent in three days, it may rebound before the five-day Lunar New Year holiday that starts Feb. 2, said Zhou Yan, a fixed- income analyst in Shanghai at Bank of Communications Ltd., the nation’s fifth-biggest lender.
Anything that happens will surely just be a blip in the scheme of things.
A crash will mean nothing in the bigger picture.
China has decades to run.
Unless they have a civil war then it will be a bigger blip.
StoryGlobal investors are bracing for the end of China’s relentless economic growth, with 45 percent saying they expect a financial crisis there within five years.
An additional 40 percent anticipate a Chinese crisis after 2016, according to a quarterly poll of 1,000 Bloomberg customers who are investors, traders or analysts. Only 7 percent are confident China will indefinitely escape turmoil.
So the economists would exclaim 'so what, more money to buy things!' But getting an extra $10 a month to take home $200 a month isn't going to lead to a splurge in flat screen TV's, but it has a disastrous effect on the already paper thin profit margins, if they actually make a profit as government subsidies via the banking system continue to prop up dodgy industries.Just this week, the manufacturing-heavy province of Guangdong boosted its minimum wage by between 18 and 26 per cent, the second increase in less than a year. The city of Beijing also increased its minimum wage by 21 per cent this month.
While higher salaries for workers will help spur domestic demand and help rebalance China’s export-driven economy, a major short-term concern is that increased labour costs will harm China’s key manufacturing sector and drive production to cheaper regions such as Southeast Asia.
Anything that happens will surely just be a blip in the scheme of things.
A crash will mean nothing in the bigger picture.
China has decades to run.
Unless they have a civil war then it will be a bigger blip.
Anything that happens will surely just be a blip in the scheme of things.
A crash will mean nothing in the bigger picture.
China has decades to run.
Unless they have a civil war then it will be a bigger blip.
China doesn't have decades to run. Japan exhibited signs of growth much like this during their "miracle" days, and China seems to be an ever worse situation than they were. Here's an article on it:
https://austocks.wordpress.com/2011/01/28/a-bear-in-china/
I will admit that China definitely cannot be ignored any longer, but all those bulls who are tossing money in China just because they believe China will be the next US are going to be in for a shock.
Interesting that the video in your link was posted on 25 January 2010 so more than 12 months later and the China bubble still rolling along.
There are certainly those, like you, who believe China is here to stay. They definitely are, but they aren't going to charm the world with double-digit growth rates every year. I mean, their population is shrinking with their strict one-child policy. This has to be the biggest smack on the face - how can the Chinese economy continue to grow at rates like today when their population is decreasing at a rate where every two people can reproduce one child. Remember, China is also reliant on cheap labour, and the reason that labour is so cheap is because there are so many Chinese.
Thank you, though, So_Synical, for presenting your opinion in a reasonable fashion. It just happens to be that the argument on China only seems to have two kinds of opinions: the bulls and the bears, and nothing in between. Only time will tell who is on the right side of the debate.
As a Chinese, I can not help but laugh at the amount of crap I read here on this thread, full of opinions and speculations and few facts to back them up.
"potential for massive political upheaval in China is almost 100% certain"?
Ok ill bite
Are you suggesting that the Chinese communist party will stay in power for ever and ever...continuing political oppression, freedom of speech etc? or allow the formation of other political party's and hand over power after a free and fair election?
Perhaps you think the communists would win a free and fair election?
Please share your unique Chinese insights into Chinese politics under 1 party rule.
Perhaps you should read more into Chinese and Asian political situation in general before make ridiculous assumptions about a future event.
Perhaps are you suggesting our Australian style pseudo-democracy will be forever be our political model and never change?
of course no political/economic model last forever, economic and political direction changes with changes in leadership however, your assumption of "massive political and economical upheaval with almost 100% certainty" is simply without evidence and to from my Chinese perspective, just ridiculous.
Don't worry, we (Overseas Chinese people) are so used to your (you white people) self-righteousness and absolute unrealistic emphasis of your value of democracy upon the Chinese civilization.
Just because a nation have single party rule does not equate to "massive upheaval", perhaps you should study history of Taiwan, South Korea and Singapore? How these Asian nations (except Taiwan which in part of China) were able to change from a dictatorship to liberal democracy without violent revolution. The transition from authoritarian to democracy need not to be a revolution or in a haste. Perhaps Chinese leadership already have political reform plan in mind? Perhaps you should stop believe in typically Australia and Western propaganda?
And in the mean time, please preach your "democracy, freedom and other bull****" somewhere else, authoritarian capitalism is here to stay in China and I as a Chinese Australian living in a democracy, with access to freedom of information, fully support the Chinese Communist Party's rule and control of the Chinese nation. They have done a wonderful job.
And in the mean time, please preach your "democracy, freedom and other bull****" somewhere else, authoritarian capitalism is here to stay in China and I as a Chinese Australian living in a democracy, with access to freedom of information, fully support the Chinese Communist Party's rule and control of the Chinese nation. They have done a wonderful job.
Btw, if you are a Chinese, why are you using a Japanese-sounding name?As a Chinese, I can not help but laugh at the amount of crap I read here on this thread, full of opinions and speculations and few facts to back them up.
"potential for massive political upheaval in China is almost 100% certain"?
I'm pretty sure its going to have a crash mate. It just looks to much like a credit induced construction/housing speculation boom at the moment. They have the negative real interest rates and everything.anyways, we have our differences and opinions. However we all hope that China does not go bear, it's not in Australia's best interest.
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