China's economy grew 3 times faster than the US

[My-Analogous]

Great Going for China!

Also China needs more people like John Ross at its side/

With John Ross they are doing fine since 1981. Let it be like that

 

[ChineseTiger1986]

China just come its RRR by 50 basis points. There is quite some possibility of monetary easing in the economy. Though the GDP in real terms will obviously grow after revaluation, it's quite likely that in nominal terms, China can fall below 10 trillion, if China initiates a QE. This QE coupled with the strengthening Dollar.

No chance, China's RMB is backed by the world's most powerful manufacturing base.

China might let RMB to depreciate a little bit in order to boost its export.

However, there is no chance for RMB to lose its value like Ruble or Rupee.

 

[Bussard Ramjet]

No chance, China's RMB is backed by the world's most powerful manufacturing base.

China might let RMB to depreciate a little bit in order to boost its export.

However, there is no chance for RMB to lose its value like Ruble or Rupee.

1. I never suggested that RMB will lose value because of structural problems like Ruble.
2. There is already heavy easing going on in major economies like Japan, European Union, and just ended in US. Easing deflates the currency. Japanese Yen has intentionally been devalued by as much as 25%. (one of the reasons why Chinese tourists are flocking to Japan)
3. China being a manufacturing economy can't tolerate a strong currency with all other countries easing.
4. Dollar is already strengthening.
5. It is quite plausible, I repeat plausible and not necessary, that China will ease. Though People's Daily says otherwise. But you never know.
6. Almost all people I am listening to are already talking about are seeing yuan weakening by 5-7%. They may be wrong.
7. What I have said above is exactly what you have said in bold. Obviously it will help exports, that is why China will do it intentionally, not that like Ruble it is bound to.

 

[ChineseTiger1986]

1. I never suggested that RMB will lose value because of structural problems like Ruble.
2. There is already heavy easing going on in major economies like Japan, European Union, and just ended in US. Easing deflates the currency. Japanese Yen has intentionally been devalued by as much as 25%. (one of the reasons why Chinese tourists are flocking to Japan)
3. China being a manufacturing economy can't tolerate a strong currency with all other countries easing.
4. Dollar is already strengthening.
5. It is quite plausible, I repeat plausible and not necessary, that China will ease. Though People's Daily says otherwise. But you never know.
6. Almost all people I am listening to are already talking about are seeing yuan weakening by 5-7%. They may be wrong.
7. What I have said above is exactly what you have said in bold. Obviously it will help exports, that is why China will do it intentionally, not that like Ruble it is bound to.

We are not Japan, and we prefer to let our currency to remain stable.

 

[Schutz]

Interesting read.

'The Hundred-Year Marathon' outlines a long-term Chinese strategy to replace the US as world leader

Never happen, China will always have extreme poverty, there is just to many people.

As for economic growth, a developing country with a pop 5 times larger should be growing several times faster than a country which is basically at a peak, China will hit that point to one day.

 

[Shotgunner51]

Never happen, China will always have extreme poverty, there is just to many people.

What is extreme poverty? China's poverty is 6.3% now.
Why always? The trend is obvious, go check data by World Bank.
Why is population size a factor of poverty? Both US and Japan have sizable population, US poverty is 1.7%, Japan almost none. China has land size of 25 times of Japan, and population only 11 times.

As for economic growth, a developing country with a pop 5 times larger should be growing several times faster than a country which is basically at a peak, China will hit that point to one day.

Utterly non-sense. By your logic, China's pop is 260 times of Singapore, then GDP growth rate should be 1300%?

Where did you learn your economics?

 

[Edison Chen]

The move comes days after the purchasing managers' index, a gauge of manufacturing activity, fell below 50 for the first time since October 2012, a sign of a weakening economy. The world's second largest economy grew at the slowest rate for 24 years in 2014.

China's producer price index (PPI) has been declining for 34 months in a row, indicating enormous pressure on the real economy, especially on small businesses, Lu noted.

There are two reasons of RRR cut by PBOC.

The first is the pressure of economy slowing down and the insufficient support of a positive fiscal policy. Feb 2015 new PMI is only 49.8%, less than 50%, reaching the lowest point during the two years. HSBC PMI is more or less the same, 49.7%. From the chain of production and selling, the insufficient demand of finished product results to inventory's stack up, so the production and material purchase is slowing. It's a seirous problem that we must consider seriously. China still adopts a positive fiscal policy and a prudent monetary policy, but the fiscal policy meets some problem I think. Local governments has very huge pressure to repay the debt, they have to issue new debts and introduce PPP model to attract social investment to fill in the deficit. But we can't always do this, there will be credit crisis. There will be a new addition of debt of 3 trillion RMB to the local, espeacially the county level governments.

The second is to lower the cost of financing, to hedge the capital outflows and decrease of position for forex purchase. This time around, according to the report, the reduction of RRR will release 700~800 billion funds into the market, this is good, it will lower the market rate and increase the money multiplier. But there is one problem, not all banks would like to finance the real market, because of the none performing rate of loan is increasing, and banks prefer low risks. So the unitary monetary policy has its hysteretic nature. In the future, the PBOC will adopt a complete set of monetary policy and some structural tools like PSL, SLF, and MLF.