The Communists Are the Greatest Capitalists in the World? A Look at China"s Stimulus
Many global economic analysts have said that China's economic stimulus package is a plan that makes sense.
Obviously, looking at the US Stimulus Plan, it's pretty transparent that it was nothing more than a "Liberal-Socialist's Wet Dream" as it put forth government programs aligned with that way of thinking + paid off all those groups that supported the Democrat Presidential Ticket.
We were told in the United States that our bailout packages, financial stimulus, and actions by the FED, Treasury, Legislature, and Administration was to solve our economic woes.
But during each announcement of a new policy or change we were told that things are going to get worse before they get better.
This negative talk generally offsets any good that has been done to solve the problem.
China's economy is 4-5 times smaller than ours and their stimulus was substantial, by comparison you'd think our stimulus would work better.
Today we see their stock market up ten percent, while we watched our own drop over 4% this week, again.
The difference seems to be investor confidence and all the negative talk in the media.
Some have asked if China and their form of capitalism is better than ours, that is to say communism-mixed with capitalism.
Is it? Or are they just in more control and growing so fast they can hide any mistakes in their growth? One thing that should be considered is that China was growing so fast they were overheating.
They needed a break to help cut waste and promote efficiency.
Is the financial crisis over for China? No, because the US middle class still is not buying, so China cannot fully recover until, the US recovers.
Right now no one knows exactly when that will be, but analysts expect we are about 2 quarters away from a rebound, then the long road up to previous highs.
Think on this.
Obviously, looking at the US Stimulus Plan, it's pretty transparent that it was nothing more than a "Liberal-Socialist's Wet Dream" as it put forth government programs aligned with that way of thinking + paid off all those groups that supported the Democrat Presidential Ticket.
We were told in the United States that our bailout packages, financial stimulus, and actions by the FED, Treasury, Legislature, and Administration was to solve our economic woes.
But during each announcement of a new policy or change we were told that things are going to get worse before they get better.
This negative talk generally offsets any good that has been done to solve the problem.
China's economy is 4-5 times smaller than ours and their stimulus was substantial, by comparison you'd think our stimulus would work better.
Today we see their stock market up ten percent, while we watched our own drop over 4% this week, again.
The difference seems to be investor confidence and all the negative talk in the media.
Some have asked if China and their form of capitalism is better than ours, that is to say communism-mixed with capitalism.
Is it? Or are they just in more control and growing so fast they can hide any mistakes in their growth? One thing that should be considered is that China was growing so fast they were overheating.
They needed a break to help cut waste and promote efficiency.
Is the financial crisis over for China? No, because the US middle class still is not buying, so China cannot fully recover until, the US recovers.
Right now no one knows exactly when that will be, but analysts expect we are about 2 quarters away from a rebound, then the long road up to previous highs.
Think on this.