Chinese Premier Blasts Protectionism, Inefficient Financial System in Davos

01-28-2009

Category:

News & Politics

Tags:

• China
• World
• Economic
• Forum
• Davos
• US
• finanacial
• crisis

[AntiDefm]

Putin said this financial crisis is a perfect storm that has decimated the old system, rendering it obsolete. He said I just want to remind you that, just a year ago, American delegates speaking from this rostrum emphasised the US economy's fundamental stability and its cloudless prospects, and Today, investment banks, the pride of Wall Street, have virtually ceased to exist. In just 12 months, they have posted losses exceeding the profits they made in the last 25 years,

[AntiDefm]

... lack of self-discipline among financial institutions and ratings agencies and ensuing distortion of risk information and asset pricing; and the failure of financial supervision and regulation to keep up with financial innovations, which allowed the risks of financial derivatives to build and spread".

[johnq123123]

Did he mention anything about certain countries using 1.25 billion coolie slave laborers with government subsidized living costs to create manufactured goods invented and designed by others that are then sold so cheaply that they are able to undersell the rest of the world?

[SavageJim01]

Intresting to hear Wen constantly say how the developed countries need to help the developing. I am curious as to what China, itself, is doing to help which developing countries? Which developing countries has it made FTAs with to boost up their development?

[SavageJim01]

I agree here, lack of spending disciplne is a major factor why the economy sucks. All international trade agreements aside, saving instead of mass consumption did help topple the economy. Jobs going overseas is another. And of course, bad loans is the trigger fired the gun.

Back to China's rant: Stupid of the Chinese pres to say US should save. If Americans do not spend, who is going to buy made in China stuff?

[borntobelegend]

Capitalism will come to an end

[AntiDefm]

Without mentioning the US by name, Chinese premier clearly lectures US on excessive consumer spending in America, which was financed largely by the failures of the US banking system and its regulators. He said "inappropriate macroeconomic policies of some economies and their unsustainable model of development, characterised by prolonged low savings and high consumption; excessive expansion of financial institutions in blind pursuit of profit;