Monday, January 3, 2011

Concerned about the economic trends in the United States: China is still a strong United States critical hard roll

The new network in 8, 12 April 11-the Federal Council warns of slower pace of economic recovery. On the same day, China has also released the economic data. Sino-American economic situation in thrown gangmei blogged, has commented that the Chinese economy is still strong, United States critical hard roll.

Pao 12 published review of the Chinese economy is still strong United States critical hard roll. The commentary says that China July statistics show that the economy is largely still holding strong, industrial, investment and retail sales, and other indicators reflect the domestic demand remained strong growth. China's economy is non-no problem, but at least there are no major crises.

Commented that, in contrast, the United States unhygienic conditions, recent data show whether employment, property market and consumption, and other important economic sectors, have the tendency to weaker performance of the economy and the financial sector is to reduce the growth expectations for the future.

But the most fundamental problem is that when the United States economy weakening again when the Government has change: fiscal expansion is not possible, then injected will blow up asset bubbles or make more money, and not on the real economy have thrust. Therefore, the United States unemployment and falling prices, the possibility of further. United States and the world is waiting for is present when the bond bubble burst, a large number of holders is should take fed into goods and to escape.

Hong Kong Wen editorial the analysis finds that as the Sino-US economic growth situation down, the two countries will be implemented in different ways, but since easing policy objectives, and US policy in effect also varies. United States seal banknotes have the next wave of financial crises. Chinese proportionality implementation of liberal policies, expanding domestic demand adjustment structure provides an opportunity for the global economy is good.

Editorial pointed out that the recent economic slowdown is to show that the Chinese mainland is facing transition pains, the authorities concerned must seize the opportunity, on the one hand, to increase policy support, development of domestic market; on the other hand the livelihood guarantee perfection, reform of the income distribution system, will gradually release the enormous spending power, not only on the Mainland of far-reaching economic development also help balance of global economic development.

The editorial said, after the outbreak of the financial tsunami, the Fed started quantitative easing, enabling United States economy escaped death. But after all quantitative easing can only treat the symptoms, not yet in the real economy, the Bank still reluctant to lend to the enterprise, large amounts of liquidity is not really into consumption and productivity.

When quantitative easing is strong, weak weak will are revealed. The Fed know, continue to drop water rescue mainly benefit asset markets, economic power is limited, but will make global hot money flooding, promotes greater asset bubbles. But the current deflationary risk is imminent, the Fed was also hold faggots restart quantitative easing, the increase in the United States and global economic instability.

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