The China Factor: Stimulus Working??

[akinkhoo]

most chinese don't buy houses on mortage, they save until they have cash. the reason of china's success is it's people. it's policies merely organised it's strength into usable output.

[Mongodelight]

boring

[ngonea]

This is baby food, we need the whole story now!, China bashing? The problem is International Banking Cartels, Corroupt US Gov, & and War Mongering of the shadow gov. USA, see Max Kesier, "There's A Dorothy Inside Us All" for the real deal about Global Monetary Breakdown Crisis, there will be no recovery, buy plenty of rice quickly! global reseach ca

[andrewbnkjv]

What better way to cause a depression in America, by Government selling out hard working American Family's, with Wicked foreign policy's- to Top Business owners- to employ overseas, and allow all American currency out of the country.

Meanwhile they get to enjoy Americas rights, privileges, and freedoms living in America as a citizen.

[andrewbnkjv]

Here's some food for thought- What is the difference of Hiring Overseas and Hiring Illegal Aliens??? Answer...nothing.

Same consequence buy on a GLOBAL SCALE.

This is like basic high school economics...

Business Owners know better...its peoples job to know better as well- and not support them.

[therealcaptobvious]

THe systems didn't place CHina in a favorable position, common sense did. The U.S. gave them a heavy surplus. Before the debt, America had a huge deficit. What is supposed to be the free market system allows Americans to privitize our affairs and keep dependance on the government to a minimum. Too much needs to be said about how our leaders have not followed free market principles.

[AwakenSafely]

it's a great point....

[mrcool011]

China is more capitalistic then America in many ways. China will be the shining light of Capitalism in the next 50 years as America fades further into socialism...talk about switching places!

[AwakenSafely]

yeah....

[cevod123]

Currently, I consider the US to be very lucky that this didn't happen 6-8 years from now. If so I think China would be able to so no to buying our treasury bonds and we would be screwed. This might still be the case now only time will tell. I do think that we are seeing a shift in world power from West to East. I think that we will share power for some time and then will lose ground to China in the future.

[the3hol]

There is insufficient room to coment fully. However:

China has not seen inflation despite dangerous money policy because labor has remained low as farmers moved to cities. This is about over.

Inflation is their biggest problem going forward.

[cevod123]

I agree, but if the US stays in a major funk and China recognizes this and plays it smart they will / should focus more on other countries for export and market more to people in their country and by doing more of the later they could adopt a stronger Yuan policy and inflation maybe slowed dramatically. They would have to be willing to have a more level and moderate growth cycle which in the end would keep them from forming big bubble in thier economy as well.

[bl782]

Its funny that chinese has prospered since creating Special Economic "Free Market" Zones since thier introduction by Deng Xiaping, which really only has the true capitalists left and other capitalists in such zones, I told everyone in my 20th century history class that China would run the 21st century, or at least once again have a bipolar world like soviet/USA

[mydickistoobig2]

the capitalist regime in US just dont know shit about what China's real objective is. China is a socialist nation of which the ultimate goal is t

[Nmhumbug]

Good vid! As a country we are too concerned with buying mountains of crap from China to stop and consider how we are making them the biggest industrial economy and MILITARY power on the planet. Wake up people!

[mydickistoobig2]

whats wrong with crap buying crap?

[CliffPotts]

Nice  to know I have been right about china's social instability all along.

[AwakenSafely]

yes. it's going to get crazier too...but we know that :-)

[CliffPotts]

Like I posted, depends if China hit that magic 10% middle-class number for their population. If they have they can weather this thing. If not ....

[AwakenSafely]

yeah...that's pretty fascinating, Cliff. Thanks for pointing this out

[EdT586]

China also has Africa and South America as its markets, the USA and the EU does not !

China has more honor students than the US has students ...higher education is the key !

There more English speakers in China than the world combined ...stay tune till this next wave of educated professionals do battle with the world's economy !

...I can go on and on !

[paddleaway]

China's recovery is based on their huge internal demand. Their exports have been crushed but they still have huge internal demand. 1.3 billion people are creating the demand. The Chinese have saved money whereas the US has borrowed and spent excessively with no savings to fall back on.

US is a consumer economy, nobody needs consumer goods/services now AND we are all scared of losing our jobs if we haven't already and so aren't spending anything even if we could. Instead we are paying off debt.

[firehotwings]

Can anyone tell me the cheapest/easiest/fastest way to buy say 10 thousand dollars worth in physical silver. I see on ebay the cheapest it goes is about $20 an ounce, and none of them sell in large quantities from what I find. Give me your thoughts.

[vtvideoman]

Buy a mini contract on the open commodity market, just open a brokerage account and pay cash

[cevod123]

I use North West Territorial Mint online They are roughly 6- 12 weeks on back order but they have 1 oz silver bullion for $15.15 per oz currently that is there own minted coins and bars. I have already recieved my first order and am waiting for second to come so I do trust them. PM me if you have further questions.

[precious21561]

maybe we can trade china California for the debt we owe them.even swap.

[tinafiedler1]

so when does China dump the dollar?

[AwakenSafely]

that is my continued question, too!

[DavidAKZ]

US Debt/GDP currently @ 350% the last time I looked. TARP considered GDP !

[hellavadeal]

If Chinese bankers do a ponsy they get shot.

[AwakenSafely]

lol...THAT'S a solid motivation to play it straight!

[optiontrader11]

China is not financing it stimulus package with debt but reserves, makes a world of difference.

[AwakenSafely]

AHHHHH.......great point! thanks for this comment. right. And, its people are not completely LOADED down with unsustainable consumer debt, either. Sure, many/most of them are very poor, but they haven't been running around living on revolving credit for decades...

[tianya1389]

Good video. China economy is the exact opposite of US economy. They saved too much vs US spent too much. So right now the best thing for both countries is to reach a balanced point. China need to spend more, while US need to spend less. That's why China's stimulus can be working. For US, the solution should be to spend less, save more. Pain in the short run means better recovery in the long run.

[AwakenSafely]

bingo! great comment. thank you

[CliffPotts]

The issue with China and spending is one of Middle-Class proportion to the whole population. If they have a viable Middle-Class then they can safely absorb the recession/deflation shock by consuming what they make. If they do not, then there is trouble afoot. A stable social order retains a minimum 10% middle class. For China that is something akin to 100 Million people. That would be a third of the US. Have they hit that magic number or not? That is a question begging to be answered.

[forestlight5]

Yes, a stimulus program will work better in China for the reasons stated in the article (reserves & less debt) and let's not forget cheap labor. Also, what resources are not available, they have been busy acquiring, creating partnerships, and they have blueprints for long term energy projects. My thoughts are, not only will they emerge from the economic downturn first, but will ride their wave to become the new wold's economic power by 2030. The Chinese think for the long term, not short term.

[AwakenSafely]

oh, cheap labor. good point!

[AwakenSafely]

yes and yes.... obviously, as you noted, the lines between real Communism and a truly free capitalistic situation have blurred beyond recognition...

[Madmikee1]

very interesting video, too bad this all makes "communism" (though that's not really what they have) look better than western "capitalism" (though that's not really what we have)

[paddleaway]

You hit the nail on the head. If the Fed and our govt hadn't interfered with the "free" market, we wouldn't be in this mess.

At least in "communist" China, the govt allows poorly run businesses to fail. Failure of inefficient and unprofitable businesses is part of making a strong economy. The inefficient and poorly run die out while the strong who make things people actually want at a good price survive.