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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (77695)	8/13/2011 2:23:50 PM
From: 2MAR$	Read Replies (1) \| Respond to of 217862

Hang Seng ...and no society immune, latest Market Swoon should be noted was an 'equal opportunity correction' , Chinese leaders have made bringing inflation under control their top priority this year tho Data released this last month showed economic growth is slowing down but not too quickly, providing relief that China should avoid a hard landing . Great analysis here in an extremely prescient interiew with Stephen Roach June 14th right before the correction and he was absolutely spot on when he notes : Message 27433152 "Look, I think the US is in a very difficult and tenuous post-crisis recovery. Job creation is lagging in large part because businesses are not confident on demand prospects for American consumers.The US economy lacks the cushion to be able to withstand a blow and certainly we're heading into a season where that blow could come from our own making given the dysfunctionality and the polarisation of our political debate in Washington right now" On China vigorously doing what we must get back to: 12th five-year plan that was enacted in March of this year lays out three very important building blocks for this transition. Number one: focusing on new sources of job creation and services; number two: boosting wage income by very aggressive urbanisation, moving tens of millions of people each year from the countryside to the cities; and number three: boosting the social safety net, especially by investing in social security, private pensions and medical insurance. You do that and the consumption share of the Chinese GDP will rise from very low levels up to about 43 per cent of GDP over the next five years. The Chinese miracle has been unprecedented over the last 30 years, but it's mainly been driven by a producer society that depends on vigorous growth in external demand. And in the post-crisis world, external demand that originates in the United States, Europe and especially Japan will be unusually weak. And so China knows this and has figured out it's got to draw much more support from the internal demand of its 1.3 billion consumers. It's got the strategy and I think the commitment and the wherewithal to deliver on that plan. Inflation is a problem. The Chinese authorities put a very high priority on this in their public statements, but they need now to deliver on those concerns and I think they need tighter monetary policy. Monetary policy is too easy in China right now and short-term interest rates need to go higher. They've raised short-term interest rates four times since last October, but the benchmark short-term lending rate of 6.3 per cent is only about one percentage point above the headline inflation rate and it needs to be higher than that and I've publicly urged the Chinese authorities to do that.

To: ggersh who wrote (77695)	8/13/2011 10:04:38 PM
From: TobagoJack	1 Recommendation Read Replies (1) \| Respond to of 217862

do you not agree with the rioters and looters in this case, standing up for what is right i do and the incident has nothing to do w/ aftermath of natural disaster, but is everything about how the governed may act out in concert their right to revolt as i had also believed, the chinese rulers fear the ruled the american rulers do not fear j6p i.e. there is no check n balance in the usa system as the elite rule by making up rules political pluralism without fear of blood is pluralism in name, only we shall discern the truth coming right up for that is my premise recommendation: getgold food for thought: - all in china knows the equity mkt is a casino, and so china casino index can go to zero and few would be fatally affected - most in usa believe in the 'free' mkt, and so as the free mkt index goes towards zero, we have what we have food to chew on: - will usa fare better than would greece going forward? contention, going forward greece shall do far better than team usa, for many of greece shall weather the storm in good enough shape, whereas too many in usa shall be wiped out at most inconvenient time. china? china will do fine, because one cannot collapse from collapse. relative trajectory, grand cycles, history guides, fate and destiny, the basics shall all determine play outcome.