Comments on: China, Artificial Boom and Artificial Currency http://agmetalminer.com/2009/10/26/china-artificial-boom-and-artificial-currency/ Sourcing & Trading Intelligence for Global Metals Markets Wed, 08 Feb 2012 15:39:20 +0100 hourly 1 http://wordpress.org/?v=3.3.1 By: Andy http://agmetalminer.com/2009/10/26/china-artificial-boom-and-artificial-currency/comment-page-1/#comment-18928 Andy Sun, 08 Nov 2009 16:30:40 +0000 http://agmetalminer.com/?p=1766#comment-18928 As for the 4trillion RMB government stimulus package, it all looks like standard works that is desperately needed by China, but alas there is some "leakage". Still, at least all of these long delayed projects will get completed soon (NB. If you can't deliver a project on time or to budget, you're fired or moved very quickly) 38% - Public infrastructure eg. railway, road, irrigation, and airport construction 25% - Reconstruction works following the Sichuan earthquake 9% - Rural development (eg. building public amenities, resettling nomads, supporting agriculture works, and providing safe drinking water) 9% - Technology R&D 5% - Energy and Environmental projects 4% - Educational, cultural and family planning purposes 10% - Other As Krugman says, there is leakage, As for the 4trillion RMB government stimulus package, it all looks like standard works that is desperately needed by China, but alas there is some “leakage”. Still, at least all of these long delayed projects will get completed soon (NB. If you can’t deliver a project on time or to budget, you’re fired or moved very quickly)

38% – Public infrastructure eg. railway, road, irrigation, and airport construction
25% – Reconstruction works following the Sichuan earthquake
9% – Rural development (eg. building public amenities, resettling nomads, supporting agriculture works, and providing safe drinking water)
9% – Technology R&D
5% – Energy and Environmental projects
4% – Educational, cultural and family planning purposes
10% – Other

As Krugman says, there is leakage,

]]> By: Andy http://agmetalminer.com/2009/10/26/china-artificial-boom-and-artificial-currency/comment-page-1/#comment-18927 Andy Sun, 08 Nov 2009 16:17:20 +0000 http://agmetalminer.com/?p=1766#comment-18927 So... are you saying that China should let its currency appreciate, and let the 400million people earning less than £700 PER YEAR (or who are unemployed) stay in that position - say for an extra year or two? So… are you saying that China should let its currency appreciate, and let the 400million people earning less than £700 PER YEAR (or who are unemployed) stay in that position – say for an extra year or two?

]]> By: stuart http://agmetalminer.com/2009/10/26/china-artificial-boom-and-artificial-currency/comment-page-1/#comment-18862 stuart Mon, 26 Oct 2009 21:28:58 +0000 http://agmetalminer.com/?p=1766#comment-18862 Dear HJG, I am pretty sure Paul Krugman was not saying the investment in infrastructure was outrageous, if that was all the momey was being spent on that would be money well spent. But we both know its not, much is going into speculative production capacity the country doesn't need or worse forthy bubbles like the housing sector , metals stockpiling and the stock market. Krugman's ire was raised by the manipulation of the currency, that's the beggar thy neighbour issue that is hurting others. Dear HJG, I am pretty sure Paul Krugman was not saying the investment in infrastructure was outrageous, if that was all the momey was being spent on that would be money well spent. But we both know its not, much is going into speculative production capacity the country doesn’t need or worse forthy bubbles like the housing sector , metals stockpiling and the stock market. Krugman’s ire was raised by the manipulation of the currency, that’s the beggar thy neighbour issue that is hurting others.

]]> By: HJG http://agmetalminer.com/2009/10/26/china-artificial-boom-and-artificial-currency/comment-page-1/#comment-18860 HJG Mon, 26 Oct 2009 19:56:00 +0000 http://agmetalminer.com/?p=1766#comment-18860 In fact, China can keep growing for a LOT longer by throwing money at fixed investment. Do you know just how much more roads, rails, water projects, canals, wind farms, conservation zones, reforestation projects, schools, hospitals, etc etc China needs? Never mind the aircraft carrier, the space station, and the moon base projects. Seriously, China needs to build infrastructure and invest in environmental sustainability, and why should she care whether you Americans think it's outrageous or not? In fact, China can keep growing for a LOT longer by throwing money at fixed investment. Do you know just how much more roads, rails, water projects, canals, wind farms, conservation zones, reforestation projects, schools, hospitals, etc etc China needs? Never mind the aircraft carrier, the space station, and the moon base projects. Seriously, China needs to build infrastructure and invest in environmental sustainability, and why should she care whether you Americans think it’s outrageous or not?

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