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Politics : Liberalism: Do You Agree We've Had Enough of It?
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To: Ann Corrigan who wrote (60217)3/6/2009 10:51:22 AM
From: Hope Praytochange  Read Replies (1) of 224748
 
Great Stall of China



While Washington stands accused of socialism, China's Communist Party isn't being as socialist as some expected.

Absent from Premier Wen Jiabao's keynote speech to China's National People's Congress on Thursday was the announcement of a major new fiscal-stimulus plan. Confident that one was coming, investors had bid up share prices around the world.

Those hopes were overdone. There are already concerns over China's ability to spend effectively the $585 billion stimulus announced last year. Less than a third of the $15 billion set for disbursement in 2008's fourth quarter was spent, a government official said Wednesday. Worries that corruption will soak up funds mean Beijing is keeping a firm grip.

Meanwhile, on top of the stimulus, China has encouraged banks to lend, and specific measures to support 10 industries are in the pipeline.

The government is waiting to see if all of this is enough. One worry: Isolated green shoots of recovery could be leading to unwarranted complacency in Beijing. China's purchasing managers' index has risen for three months in a row and bank lending is up.

But ruling out another stimulus plan would be a mistake. Global economic uncertainty remains huge. And China has room to maneuver. Even with the current plan, China's debt as a percentage of GDP will remain enviably low compared with its free-spending Western peers....
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