When the Chinese Cut Rates It's Time to Worry

[S10]

Inflation has been slowing down in China for more than a year now, and manufacturing is experiencing a slow down. If China dips below 7% growth rate, then social unrest may begin to surface. It's now a good time to cut rates to stimulate the economy. However, I don't think it's going to work. A new economic storm is looming with EU ready to implode on itself.

If you think 2008-2010 was bad, this one will make it look like a minor headache.

 

[kewell333]

At least we cut 25 basis points in June after India cut 50 basis points in April.

And India has cut interest rates with double digital inflation, why we dare not to cut interest rates with only 3% inflation?

Althogh India cut 50 basis points in April, it seem useless to India ecomomy.
India export shrink 4.2% in May.
Exports shrink 4.2% in May - The Times of India

Before cut interest rates ,China exports jumped by 15.3% in May and inflation drops to 3%.
BBC News - China trade data in surprise sign of strength

 

[fly2012]

Inflation has been slowing down in China for more than a year now, and manufacturing is experiencing a slow down. If China dips below 7% growth rate, then social unrest may begin to surface. It's now a good time to cut rates to stimulate the economy. However, I don't think it's going to work. A new economic storm is looming with EU ready to implode on itself.

If you think 2008-2010 was bad, this one will make it look like a minor headache.

I agree that this one is worse and can last for a long long time.

My brother works in a bank, he told me that luckily Chinese saving rate is quite high so it is painful but won't be a total shock or large scale social unrest. He said if all Chinese spend like people born after 1990s do, then it could be really brutal. Of course that if everyone spends crazy, the economy may turn around, you never know.

From Chinese forums, it seems that construction related sectors get hit pretty bad, but for some other sectors, like software etc, it is actually easier to find a job now. Not sure whether that's representative

 

[Donatello]

Recession never ended. Get ready.

 

[JayAtl]

Hei...you seem lose control this topic which start to BS China...
So you want to make this topic dirty?

$7.5 trillion : $1.4 trillion.... oh...it is not 5x...It is more than 5x..

you need to go check India's and China's GDP troll. World Development Indicators and Global Development Finance - Google Public Data Explorer

 

[kewell333]

you need to go check India's and China's GDP troll. World Development Indicators and Global Development Finance - Google Public Data Explorer

India 2011 GDP is 78 trillion Rupee. Use newest exchange rate 55.7/1 it is $1.41 trillion.

China 2011 GDP is 47 trillion RMB, Use newest exchange rate 6.36/1 =$7.41 trillion.

 

[Chinese Century]

you need to go check India's and China's GDP troll. World Development Indicators and Global Development Finance - Google Public Data Explorer

why have the mods still not perma banned jayatl/korean and banned his IP address?
all this fool does is spew anti-chinese BS all day long, the guy has absolutely no life whatsoever.
mods, do your job please.

 

[Jade]

India 2011 GDP is 78 trillion Rupee. Use newest exchange rate 55.7/1 it is $1.41 trillion.

China 2011 GDP is 47 trillion RMB, Use newest exchange rate 6.36/1 =$7.41 trillion.

Is it kewell333 economics? Unfortunately, the world doesn't calculate GDPs that way

 

[RazorMC]

... However, I don't think it's going to work. A new economic storm is looming with EU ready to implode on itself.

If you think 2008-2010 was bad, this one will make it look like a minor headache.

Exactly. Cutting interest rates is only a shot-term relief. These steps never actually solve the problem. The world's going to go deeper into recession in the coming years.
And since almost every economy is inter-connected (thanks to rapid globalisation in recent decades), the downfall of even one major economic system (like the US Dollar or the Euro) could prove fatal to the world GDP.

 

[Jade]

According IMF, the GDP (PPP) figures that were calculated in April 2012 for China was 11,299,967 million and for India was 4,457,784 million, meaning Chinese economy is 2.5 time the Indian one.

 

[ChinaToday]

When china cut rates the world is worries when india cut rates the world laughs

Is it kewell333 economics? Unfortunately, the world doesn't calculate GDPs that way

funny indian members lecture us how to run our economy

 

[Chinese-Dragon]

According IMF, the GDP (PPP) figures that were calculated in April 2012 for China was 11,299,967 million and for India was 4,457,784 million, meaning Chinese economy is 2.5 time the Indian one.

According to the same IMF... GDP (PPP) should NOT be used for international comparisons.

"The IMF considers that GDP in purchase-power-parity (PPP) terms is NOT the most appropriate measure for comparing the relative size of countries to the global economy, because PPP price levels are influenced by non-traded services, which are more relevant domestically than globally," the IMF said.


"The Fund believes that GDP at market rates is a more relevant comparison."

edition.cnn.com/2011/BUSINESS/04/26/us.china.economy/index.html

Nice try though, Indian.

 

[rcrmj]

I don't know economics, what are you talking about? I bet I know holy better than you in the field of economics.

by the way why you pick on me as I barely talked to you before?

that indian needs to pick someone to fight```they always need attantion

 

[lem34]

When china cut rates the world is worries when india cut rates the world laughs



funny indian members lecture us how to run our economy

Yes also they like lecturing on a lot of things they know nothing about

 

[rcrmj]

According IMF, the GDP (PPP) figures that were calculated in April 2012 for China was 11,299,967 million and for India was 4,457,784 million, meaning Chinese economy is 2.5 time the Indian one.

lol there is the useless PPP again```dont find stuff to mentalmasturbate, even PPP is useful to some extend but its nothing for India, because your primitive society (defined by WIPO) cant make anything but have to buy everything from foreign countries, and you cant pay with your worthless rupees but U.S dollars...
you have to buy computers from others for your low-end data processing jobs,
you have to buy telephones from others to make your call-centers runing
you have to buy hardware from others in order to keep your tiny banks and telecom companies operating
you have to buy trucks from others to reap your biggest exports - cottons
you have to buy generators from others in order to have your primitive manufacturing sectors runing
etc````````