‘Radical’ Economic Stimulus Package in China Soon: State Media
The AFP reports a speculative “radical” stimulus package to help curb the global credit crisis on China’s economy may be announced later this month. The package may also include infrastructure projects and clean energy initiatives.
As China’s economy enters an “excessive slowdown” this month, speculation about an economic stimulus package rises.
“Only a radical stimulus package can save the country from excessive slowdown,” China
Daily quoted from a senior Cabinet official who did not want to be named.
The same official said he also submitted a report to the Chinese government “to encourage government spending and investment”. His suggestions are expected to turn into new policies when the Chinese government holds its annual economic and financial conference in November or December.
China’s growth slowed to nine percent this last quarter, with the economy largely affected by a steep decline in exports from abroad. The recent report expresses a desire to stimulate domestic demand by encouraging bigger infrastructure projects and clean energy initiatives. The estimate for the package is reported to be somewhere around five trillion yuan (730 billion dollars).
China has also cut interest rates to help encourage domestic growth.
Lebanon’s Daily Star also reports that China is looking to “reduce its dependence on capital spending, [...] put in place an infrastructure of roads, power grids, ports, and railways that will serve its domestic economy for decades.”
POSTED COMMENTS: One Response
The Worldwide DEBT is the problem.
The best solution for the present economic crisis would be a REBOOT or restart of the entire debt system for the ENTIRE WORLD.
1. A data base listing ALL DEBT, government, business and personal needs to be created. The list would need to list the debt and debt holder with a bank that could make an accounting of the debt. Included would be all national debt of all nations, all mortgages car notes and credit cards for individuals. All outstanding bond and other debt for corporations, The idea is to list ALL DEBT of any kind owed.
2 . Every government on the planet would need to call a special session of it’s legislature.
Using the same authority that governments have to use or create FIAT CURRENCY the legislatures and Central Banks need to authorize the creation of ACCOUNT CREDIT in an amount equal to all the listed debts in the world.
3. The Various governments and Central Banking Systems then need to make an accounting change equal to the debt in the form of an ACCOUNT CREDIT or CREDIT zeroing out ALL THE DEBT in the entire world, and crediting all debt-holders in the world.
The following day the economy of the entire world would restart and the Stock Markets of the world would react to the new renewed capital in the banking systems, the Capital now available to restart all business and the disposable income to the individual people would restart and grow the retail sectors and the manufacturing sectors of the entire world.
Allen Charles Report
http://allencharlesreport.blogspot.com/