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Strategies & Market Trends : Currents of Currency -- Ignore unavailable to you. Want to Upgrade?


To: Ahda who wrote (121)1/9/2012 11:51:06 AM
From: The Wharf  Read Replies (1) | Respond to of 594
 
China is decreasing her reserves requirements I think it has to do with creative destruction. Problem is how to maintain a robust economy when robust earnings must be maintained and cost savings can mean a decrease in heads and increased use of technology . Good in some ways but that transition can cause unemployment problems . Nasty type of situation as rapid growth caused inflation and you need continued growth to service the result of inflation.

Difficulty in making loans easier is you know you need business but you dont know if you will increase the inflation problem. that the increased requirement of reserves were trying to decrease.