Tuesday, November 11, 2008

China Stimulus

China has announced a $586B stimulus package. Though the number is quite high, since we are considering a communist nation, it doesn't particularly strike me as news, to the degree that the economy is funded by the public sector to begin with. Hopeless optimists see this as reason for a possible turnaround of a general downtrend in their manufacturing that had been explosive over the past few years, but was driven by credit and dependent on extreme global consumerism also driven by credit. Actually, it is an admission they have the same serious financial woes that are affecting other nations

No comments: