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China and Significant New Stimulus

Overview: You might want to read this article for confirmation that China's government seems to be increasingly concerned about growth as it announces 'stimulus packages'. The article includes what I think is some good 'on site' reporting of what is going on economically in parts of China.

I can't see this as good news, if for no other reasons than:

  • I can't see how stimulus in China can help other non-resource based countries (if indeed it can help resource based countries significantly); and,

  • I continue to think stimulus (read 'quantitative easing') in China or any other country is not the answer to ultimate meaningful economic recovery.

Topical Reference: China announces 800 billion pound stimulus to boost confidence, from The Telegraph, Malcolm Moore, August 26, 2012 - reading time 4 minutes.

 

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