November 09, 2008
Beijing Announces Massive Stimulus Plan
Acting quicker and bigger than forecasters expected, China's State Council revealed Monday morning huge economic stimulus efforts valued upwards of half a trillion (US) dollars. The central government will spend several hundred billion Yuan on infrastructure building (railways and roads) immediately to be matched by Provinces and City spending on development including housing. Markets are responding positively this morning with Chinese stocks up and commodities markets -- including oil -- getting a boost as well.
Only China and the USA have the latitude to take on central government debt to build their way out of a depression. Will China's actions be followed in the next year or two by government spending in America?
Labels: inflation, panic of 2008
# posted by Sinomania! : 11/09/2008 10:15:00 PM
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