[lbo-talk] New "Multipole" China Struggles to Rescue Itself

boddi satva lbo.boddi at gmail.com
Sun Nov 9 22:56:44 PST 2008


"Nov. 10 (Bloomberg) -- Asian stocks rallied for the first time in three days and U.S. index futures jumped after China announced a $586 billion package to revive growth in the world's fourth-largest economy."

http://www.bloomberg.com/apps/news?pid=20601087&sid=antmw_WHW7DE&refer=home

China's money, which was supposed by the BRIC theorists to be the savior of the decadent West, is now being spent on...China.

A look at commodities tells you why: from Washington state's soft white wheat to Australia's iron ore, the previously taken up by the Chinese expansion assumed to be eternal are now going nowhere.

Quite the opposite of the predictions that China is going to be the triumphant survivor, the evidence now suggests that the downturn will be hardest on the developing world and China will suffer particularly badly.

A subsidy program of 7% of GDP is astounding for a country that was growing at 10% a year a year ago.

-- peace,

boddi

http://financialroadtosocialism.blogspot.com/



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