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China's $586b stimulus package

Discussion in 'ASX Stock Chat' started by sammy84, Nov 10, 2008.

  1. sammy84

    sammy84

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  2. nick2fish

    nick2fish

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    Well they need it and they will be playing catch up for a while to come IMO
    But the most important point is They are doing it because they Can!!! a great position to be in.

    Battered and bruised Hedge funds manipulating commodity markets :(

    Wait till reality takes hold, then we may have a more realistic take on demand :2twocents
     
  3. weirluo

    weirluo

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    Cheap resources provide a good oppotunity for CHina to further industralize and generalize.

    How much miners are to benifit? Not much. China was blamed for high oil/other resources price until August this year, while its demands so far hasn't dropped much, the curde oil price for exampla has gone down to 63 as today from 140. Now everyone hopes it's driving the price/whole market up? Give it a break. China has a big need of resources, but the world is much bigger. China is lucky to have a good run itself.
     
  4. Pairs Trader

    Pairs Trader

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    About time they did something, they do have 1.4 trillion USD in reserves that they want to re-deploy out of US treasuries into more agressive & diversified assets, this looks like a smart play by the chinese.
     
  5. sammy84

    sammy84

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    Yeah that's a good point. I have a feeling that this stimulus package will mark establishment of China as the worlds largest superpower.
     
  6. dhukka

    dhukka

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    A $586 billion stimulus package or just rearranging chairs on the titanic?


     
  7. KFC soup

    KFC soup

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    think it's in the right direction.
    all government should move the infrastructure needs for the next 10 years forward to the next 2 years. at least then they can keep the the unemployment figures from rising.

    hopefully this becomes mainstream at the g20 meeting

    what's buggering me is, our politicians are talking about cutting infrastructure spending in a economic crisis.

    let's have a negative budget now! we can make up for it in a year time.
     
  8. jeflin

    jeflin

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    The stimulus package may be insufficient to reverse the global slide. Oil has fallen below $60 and other commodities are suffering the same fate.
     
  9. wildkactus

    wildkactus

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    China needs to do this as anything under 9% growth for china is a recession.
    We are Starting to see this now, there has been about 3000 factory closures so far in the pearl river delta, mainly in cheap goods (clothing, toys, shoes, etc). This is also a good thing as it gets rid of the fly by night operators, and make the other factories get there duck in a row.

    unemployment will be a problem in some of these delta cities. Dongyuan is an example, was there last week and in some places it is a ghost town, where last year it was hard to get a factory unit, now it's take our pick.

    on the other side they need to keep up with the infrastructure projects, power and water are the big ones, a lot of places have manatory days of no power for factories and even then it goes out for no apparent reason on the other days.
    Then there are the new roads, airports, rail lines, ports, that need to be built and maintained just to get all the people across the country connected.
    They have come a long way but still have a long way to go.

    China it just keeps changing by the day.
     
  10. Flip

    Flip

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    I am subscribed to the Euro Pacific Newsletter. please remove this post if it is spamming but I thought it was kinda relevant.

     
  11. sinner

    sinner

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    LMAO! Peter Schiff vs the other dude, who must be eating some serious humble pie right now. I recommend everyone watch this youtube link!

    They are laughing at him like hes crazy.
     
  12. Ageo

    Ageo

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    WOW that video was insane (and fantastic) i cant believe every so called expert was against Peter and they were taking the piss out of him (laughing etc...) hehe Peter is the man and to think he's Ron Pauls advisor the 2 cant get any better.

    Highly recommended.
     
  13. sinner

    sinner

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  14. Ageo

    Ageo

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    lol typical loser, did you see when they asked him about the bet he shrugged his shoulders as if to say "did i make a bet?" Art Laffer is a good guy to listen to so you can do the exact opposite. And to think he has advised past presidents!
     
  15. drsmith

    drsmith

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  16. c-unit

    c-unit

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    Haha. Peter Schiff is the man, thats for sure.

    Can someone answer this question for me though please. China has been building up these foreign reserves over the past decade through such large trade surpluses...then how does the Chinese government get their hands on it? Shouldn't the reserves be owned by the private sector? Or is the difference between public and private sector in China less clearly defined than the developed Western economies?
     
  17. mark_au

    mark_au

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    Indeed, this is a truly amazing video, i can believe how arrogant some people are...
     
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