Posted on 05/25/2015 7:14:47 AM PDT by Lorianne
Beijing has just initiated a round of accelerated government spending, and it will, in all probability, end up as the biggest such effort today.
Wednesday, the Chinese central government announced both the allocation of 1.13 trillion yuan ($185.8 billion) for upgrading internet infrastructure and the creation of a 124.3 billion yuan fund for affordable housing. These expenditures follow Monday’s authorization of six new rail lines costing 250 billion yuan.
This month, as Xinhua News Agency reports, Beijing has unveiled a “pro-growth measure” at the rate of one every two days.
April was a banner month for Beijing’s spenders as well. The Ministry of Finance reported a 33.2% increase in fiscal spending compared with same month in 2014.
For the last several years, Beijing has been using fiscal stimulus in varying amounts to keep the economy humming. No one, however, thought Premier Li Keqiang, generally considered a reformer, would resort to the old-line, anti-reform tactic of massive government spending.
There were two principal reasons for this belief. First, many thought Beijing had finally opted for fundamental restructuring to grow the economy. Analysts hailed the issuance of the Communist Party’s November 2013 Third Plenum decision, which promised substantial reforms, as proof of the political victory of those favoring progressive change. Fiscal spending, on the other hand, has been considered the antithesis of reform because investment-led growth—the result of that spending—would only take China further away from the ultimate goal of reform, a consumption-based economy.
(Excerpt) Read more at forbes.com ...
Two chickens in every pot; two cars in every garage it sounds like.
Obama has already outdone them with his $trillion plan that went to his cronies.
No one, however, thought Premier Li Keqiang, generally considered a reformer, would resort to the old-line, anti-reform tactic of massive government spending.
...
Hey, if it’s good enough for America, it’s good enough for China. Kleptocrats love big spending projects.
Looks like yet another government trying to buy it’s way out of an economic downturn.
The world has entered a new era.
Americans are Keynesians and Chinese Communist are Keynesians. We basically hold the same economic beliefs, with only marginally different levels of state intervention and ownership in the two countries.
Sheeeeeeyit. Obola, Boehner and McConnell spend that much a month.
$20 billion US for housing. Speculating that their economy is going to crash and people will need housing? $30 billion US for internet upgrades. Bread and circuses for the Chinese people? How much of the total will be kickbacks to the Chicom Party?
indeed, and let us all guess...this time it will be different. it will work this time.
yes okay i know it has never worked in the history of the world BUT this time its different
i mean what could go wrong...other than a worldwide financial and political collapse the like we have never seen before.
We spend all that and more every month.
Amateurs.
If Li succeeds, he will at best bought himself a year of debt-fueled growth. If he fails, almost any dark scenario could occur, perhaps by the fourth quarter of this year.
"dark scenario" I think that's Chinese for revolution.
This time Tiananmen Square will be border to border..
To try to avoid revolution of course means that the Chi-Coms will provoke a war . . . .
you can be assured, that even though it is hidden from her people, that they will loose 75% of that to corruption and government graft.
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