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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (26056)	3/21/2005 12:48:17 AM
From: Amy J	Read Replies (3) \| Respond to of 116555

Yiwu, RE: "this must be the difference bet. a democratic gov. and a dictatorship" It is actually. This is why China is 2X the growth of India since the 70s. India is Democratic and China isn't. Below a certain $ per capita, Democracy is awfully inefficient. Meanwhile, China is more efficient and takes a hard stand at doing what's right. This is why Democracy doesn't work below a certain per capita. Of course, dictatorships don't work well above a certain $ per capita. So-called freedom is nonesense when people are starving and would much prefer the "freedom" to eat - something a dictatorship is better at ensuring than a democracy in the early stages of a country's economic conditions up to a certain per capita. China has saved many more lives than India, purely because they raised their per capita faster than India so less people starve now. People never look at this intangible when they look at China. In a small picture (or snapshot of a year), sure, China has some policies that have hurt people, but if you measure China over 30 years, less people have died in China than India from starvation. That makes China's dictatorship a more humane structure than India's democracy, if one believes freedom includes the basic right to have food. Regards, Amy J

To: RealMuLan who wrote (26056)	3/21/2005 10:05:29 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

China interest rate reform aims to let banks decide rate spread - Monday, March 21, 2005 7:08:45 AM afxpress.com (updating with more details, background) BEIJING (AFX) - The People's Bank of China (PBoC), the central bank, said the country's interest rate reform program is aimed at giving commercial banks the freedom to decide their own interest rate spread In a statement on its website, Wu Xiaoling, central bank deputy governor, says the PBoC will modify the benchmark interest rate after it has moved ahead with broader interest rate reform The central bank has already given commercial banks limited freedom in setting lending rates, but deposit rates continue to be set by the central bank Wu said China's current treasury-bonds structure is not good enough to provide a benchmark interest rate for the market and the central bank will reform treasury bonds issue to provide such benchmark rate Last October, the central bank raised both benchmark one-year deposit and lending interest rates by 27 basis points on back of inflation pressure, its first rate hike in more than a nine-year period In today's statement, Wu also urged commercial banks to get more sensitive to macro-economic policy changes to prevent financial risks when granting loans Wu said the central bank will use various monetary tools to maintain a stable credit growth this year

To: RealMuLan who wrote (26056)	3/21/2005 10:09:47 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Eichel ´very satisfied´ with EU stability pact deal [Germany happy with stability pact deal but details not yet announced - mish] Monday, March 21, 2005 10:33:09 AM afxpress.com Eichel 'very satisfied' with EU stability pact deal BERLIN (AFX) - German Finance Minister Hans Eichel said he is "very satisfied" with the results of the EU agreement on reforming the stability and growth pact In a statement, Eichel said EU finance ministers reached a "good political agreement" The pact is now "more rational economically, more growth-friendly" and makes it more possible to review countries on a case by case basis, he added In Germany's case, he said, this means the costs of reunification as well as the fact that the country is the biggest contributor to the EU budget will be taken into consideration He said the changes agreed upon include, among others, considerations on a country's economic growth and phases of stagnation It also includes a "reasonable and more realistic" time frame for measures to cut budget deficits, he added