Wen Pledges to Cool China Property Prices, Resist Yuan Pressure Chinese Premier Wen Jiabao said the government will cool property prices, resist pressure for the yuan to appreciate and keep inflation at "reasonable" levels. "Property prices have risen too quickly in some areas and we should use taxes and loan interest rates to stabilize" them, Wen said yesterday in an online interview with the official Xinhua News Agency. China will "absolutely not yield" to calls for currency gains, he said. China's property prices climbed last month at the quickest pace since July 2008, adding to concern that record lending and inflows of money will inflate asset bubbles in the world's fastest-growing major economy. Central bank adviser Fan Gang said Nov. 18 that the nation needs to be on alert for stock, real-estate and commodity bubbles as global capital flows into emerging economies. Read more...
Chinese Premier Wen Jiabao said the government will cool property prices, resist pressure for the yuan to appreciate and keep inflation at "reasonable" levels.
"Property prices have risen too quickly in some areas and we should use taxes and loan interest rates to stabilize" them, Wen said yesterday in an online interview with the official Xinhua News Agency. China will "absolutely not yield" to calls for currency gains, he said.
China's property prices climbed last month at the quickest pace since July 2008, adding to concern that record lending and inflows of money will inflate asset bubbles in the world's fastest-growing major economy. Central bank adviser Fan Gang said Nov. 18 that the nation needs to be on alert for stock, real-estate and commodity bubbles as global capital flows into emerging economies.
Read more...
SNAFU (profile) wrote on Sun, 12/27/2009 - 2:17 pm I have been cut down for saying this before, but I will say it again: Balanced trade is ok, so no more than say 10%+/- with any country. Beyond that tariffs 100%. Otherwise we are po-house bound. You can assemble all the Nobel Economists you like, but the slide to the bottom will and is happening. India has more kids under 15 than the US population. China has 200 million people that are migrant labor. Need I say more? Sufficient capital is/will find where the cheap labor is, always! My 2c. [...] crazyv (profile) wrote (in reply to...) on Sun, 12/27/2009 - 2:55 pm SNAFU wrote:Need I say more? Sufficient capital is/will find where the cheap labor is [end] 16 years ago at conference in Washington D.C- I told Sen. Dorgan that advocates of free trade in the United States were just racists. Most people thought I had lost my marbles- but I went on to say that the conventional thinking was that the US could keep the high paying jobs while transferring the low paying jobs overseas what makes you think that the India's of this world will be content with just the low paying jobs and that they won't come after the high paying jobs as well? To believe that wasn't going to happen with pure racism. I don't think most people got it but a few did. Unfortunately I have been proven right- and as long we continue to believe in "American exceptionalism" at he expense of a hard look at our competitive situation we are going to get screwed.
I have been cut down for saying this before, but I will say it again:
Balanced trade is ok, so no more than say 10%+/- with any country. Beyond that tariffs 100%. Otherwise we are po-house bound. You can assemble all the Nobel Economists you like, but the slide to the bottom will and is happening. India has more kids under 15 than the US population. China has 200 million people that are migrant labor. Need I say more? Sufficient capital is/will find where the cheap labor is, always!
My 2c.
[...]
crazyv (profile) wrote (in reply to...) on Sun, 12/27/2009 - 2:55 pm
SNAFU wrote:Need I say more? Sufficient capital is/will find where the cheap labor is [end]
16 years ago at conference in Washington D.C- I told Sen. Dorgan that advocates of free trade in the United States were just racists. Most people thought I had lost my marbles- but I went on to say that the conventional thinking was that the US could keep the high paying jobs while transferring the low paying jobs overseas what makes you think that the India's of this world will be content with just the low paying jobs and that they won't come after the high paying jobs as well? To believe that wasn't going to happen with pure racism. I don't think most people got it but a few did. Unfortunately I have been proven right- and as long we continue to believe in "American exceptionalism" at he expense of a hard look at our competitive situation we are going to get screwed.
Possibly related descriptive statistics and other observations:
China-Profile, Gerhard K. Heilig, Austria Dec 2008, R&D competition April, 2008, contracting practices Diversity is the key to economic and political evolution.
