China has announced a $586 billion spending package to boost domestic demand while vowing to carry out "moderately easy monetary policies."Sorry to "hog the blog," but there have been a lot of blogworthy events this weekend, and I have been internet addicted... This plan is incredibly massive for a country like China, but it will not work. America's didn't work. This won't either. It also would not surprise me if this is printed money coming out of China's central bank and is being used to undermine the effect the FED's printing spree will have on the exchange rate, rather than buying the debt as I have suggested. The two amounts are of similar magnitude. We shall have to wait and see....
Sunday, November 9, 2008
Since America's Stimulus Worked So Well..
China is doing the same thing. On a massive scale.