China has tightened money supply (monetary policy) in order to control inflation. Now they will modify it with a “directional loose” money supply.
What they mean is that certain industries will be allowed easier access to financing. Those industries include agriculture, certain small and medium sized businesses, and construction of low income housing.
Chinese officials hope this new policy will still hold down inflation, without putting a drag on industries.
“The U.S. has made other economies, including China, partly pay the bill for its recovery.”– Zhang Xiaoqiang, National Development and Reform Commission
“…the global economy is strapped stiff in the chariot of the U.S. dollar. The United States adopted quantitative easing policies and successfully levitated the inflation level on a global scale. The country needed the world’s help to solve its debt pressure. Its domestic economic growth can hardly free it from its debts.”-Ye Tan, National Business Daily
“More than 70% of our products are exported to the U.S. while the rest all go to Europe. Therefore, the depreciation of the U.S. dollar as a result of an economic recession will have a great effect on us. The only solution we can think of now is to produce high-end products. Buyers of these goods usually care less about prices.”-Zhou Mingwang, Yiwu Mingwang Jewelry Company
“The economic situation in the United States and Europe is not going to recover within two or three years, so we will probably reduce the proportion of exports to 50%.”-Zhang Guanjin, Shaoxing Jinyong Textile Company
“It’s like gambling, it’s hard to secure substantial, long-term profits. The only thing we can do is to transfer our factories to the inland regions to reduce costs.”-Chen Xi, Wenzhou Dongyi Shoes Company
“The economic development mode, which is highly dependent on high energy consumption, heavy pollution and resource exhaustion has reached its end in China.”-Dong Dengxin, Wuhan University of Science and Technology.
“We cannot count on the U.S. promise to ensure the security of our assets [reference to the U.S. debt China holds]. We should rely more on domestic demand and become stronger by ourselves. Don’t worry about any hard landing in China.”-Zhang Xiaojing, Chinese Academy of Social Sciences
“A series of actions adopted by the EU this year suggests that tougher trade policies adopted towards China may increase the possibility of trade protectionism.”-Bai Ming, Chinese Academy of International Trade and Economic Cooperation
Last November, the European Union put together a five year plan to boost European production. The plan targets China by imposing and raising tariffs. The goal is to force Europeans to start buying more expensive European made products by slowing, or stopping the importation of Chinese products.
Earlier this year the EU already jacked up tariffs on Chinese ceramics by 70%! Now, as part of the five year plan, tariffs will be raised on other inexpensive products coming from China. Several EU member countries have also boycotted products made in China.
The five year EU plan is known as ‘protectionism’. If you know your history, protectionism became the main economic policy of many countries, including the United States, prior to the First World War, and prior to the Second World War.
Also, protectionism is the result of bad economic times, like major recessions, or depressions. The times we’re living in now look more and more like history repeating itself. What’s next is another World War. Right now it looks like Europe Union has drawn the line with China, who’s next?
Several pro-gun states, like Idaho, are hoping U.S. gun makers will settle in their state.
Idaho has even passed a law that exempts guns made in Idaho from Federal gun control laws (Idaho Firearms Freedom Act, aka; made in Idaho gun law).
Now the race is on, between other states that have passed similar laws (like Montana, Utah, Arizona, etc), to see who can woo the most gun makers. Many of the U.S. gun makers are located in states that have passed strict anti-gun laws.
Humorously Idaho Department of Commerce’s Bibiana Nertney calls guns “recreational technology”.
Unfortunately Idaho officials are trying to claim the state has low or no taxes, uh, I live in Idaho and that’s a lie! Unless they mean low or no taxes for big companies. Officials are also pushing the fact that they’ve destroyed unions, which has been proven to be the cause of the drop in overall income in Idaho, which means a lot of people can’t really afford to buy those nice new guns. That aside, I do agree with another lure officials are using to get gun makers to move here; the right to keep and bear arms!
Idahoans, do your research, help the local economy, contact those gun manufactures on the other side of the country and get them to move to Idaho!
For weeks now lower class Israelis have been protesting the bad economic situation in Israel. Now, August 13/14, there are hundreds of thousands of protestors in 18 Israeli cites.
Recently eleven Israeli soldiers went awol (absent with out leave) because they were starving. Military service in Israeli is mandatory, and you must pay for certain supplies, like food, yourself. The soldiers are from poor families, and instead of getting help from soldiers who’re better off, they were ridiculed.
The current protests are taking place in Tel Aviv, al Quds (Jerusalem), Be’er Sheba, Haifa and several others in what’s called the “periphery” (which means any place outside Tel Aviv and al Quds).
Police are out in force. Some Israeli protestors are demanding the current Israeli government be replaced. One arrogant, pro Zionist reporter asked one protestor: “Aren’t you asking for too many things? Don’t you think you need focus? What can you achieve like this?”
Prime Minister David Cameron hired former Los Angeles cop, Bill Bratton, to advise him on how to handle the growing discontent of the people of the Britain.
London police are pissed off at the idea that they are not considered good enough for Cameron to consult with: “The Association of Chief Police Officers and the Federation understand U.K. legislation and are in a much better place to advise the PM than an American. Why won’t the Prime Minister consult us?”-The Met (Scotland Yard) Inspectors Branch Board statement
Part of the British government spending cuts hit the cops, not just the lower class. Thousands of bobbies are to be laid off. Many in Britain are wondering, as things get worse, who will be there for riot control and other civil disturbances?
The clue is in Bill Bratton. He runs a private security company, called Kroll Associates. Could part of the “consulting” with the Prime Minister involve how to privatize law enforcement in the United Kingdom? I wonder how the British bobbies will feel when they get laid off and join the ranks of all those unemployed young people they beat and shot (kinda like when a cop goes to prison)?
“We shouldn’t be cutting services. We should be investing in young people, we should be investing in our society.”-protestor
August 13, thousands took to the streets in North London’s Hackney. They were protesting all the cuts to social programs for the lower classes. The main stream right wing media in the U.S. and U.K. ignored the protest.
The people were also protesting the police shooting of an unarmed man, and the beating of a 16 year old girl, which led to the violent rioting this past week. However they said they didn’t support violence, even by the police: “We don’t condone damage, fires, threat to life and violence like that. At the same time we understand why young people are angry.”-protestor
Most protestors agree that what’s needed is more jobs: “They should spend the money in this country, we need more jobs for our youngsters!”-retired man
“In the past couple of weeks, the world has moved from a troubled multi-speed recovery to a new and more dangerous phase.”-Robert Zoellick, World Bank president
In an interview with Australian media, the president of the World Bank says things are not getting better, and anyone who complains about the drastic cuts in their taxpayer funded social programs is a terrorist!
“We are in the early moments of a new and different storm, it’s not the same as [the] 2008 [financial crisis].”
Zoellick says the debt situation in Europe is much worse than what’s being reported. He also says governments took too long to take action. Because of the slow response, of Europe and the United States, to deal with economic and financial problems, the world’s financial power is rapidly moving in China’s favor.
Zoellick also said that public protests over drastic government cuts in social programs are a threat, and he agrees with government crack downs on protestors: “I believe what British Prime Minister David Cameron is doing in the U.K. is really necessary.”
So you see the new terrorists in the new global economic war, is you!
August 12, the FDIC took over six branches of the First National Bank of Olathe, in Kansas. This makes the 64th failed U.S. bank this year.
For 2011 most of the failed banks are small regional, or local banks.
To see the list of failed banks go to the FDIC website.
During Ramadan the Iranian government is officially encouraging local Farmer’s Markets, called Direct Markets in Tehran. This is in response to consumers demand for lower food prices.
However, comments from shoppers have been mixed. Some Direct Market shoppers claim the prices are cheaper and they can find what they need, while an almost even number of people said the opposite. One man said the price difference was only slight. It just proves the saying that you need to “shop around” for the best price.
During Ramadan Muslims fast during the day, and eat after the sun goes down.