Gamesmith94134: Li Keqiang’s Bottom Line After reading Mr. Roubini’s “De-risking revisited” I realize the slow growth in the EMN, and it even happened in China. “While risk aversion and volatility were falling and asset prices were rising, economic growth remained sluggish throughout the world. Now the global economy’s chickens may be coming home to roost.” The concept of perpetual growth would end if the QE ceased. Perhaps, many would have shocked by the China Commercial Bank’s announcement on the 90days products at 5.5%; or the 6 trillion shadow banking off the balance sheet may turn off the credit and loan industry. "prominent risks are not only in the shadow-banking area but also in local government financing vehicles, and we do need to be on high alert," Vice-Minister of Finance Zhu Guangyao said in Beijing on Friday, Zhu said. Perhaps, the present danger of the fixed assets and ETF management may face with half full or half empty based how each economy is reacting to the availability of cash flow or each central bank may limit itself in. In the process, the equitable verses the pyramid scheme will consequently fall on both inflation and deflation, it depend on the sources of financial and local developments. For the outlook on the Li’s ten points view on the finance and his micro economical stand, it contrasts with the ECB’s 0.5% interest rate unchanged; I felt the polarization at the coming chicken comes home to roost. At the marginalization on the 7-9% growth, many insurer and pensioner like us would have a tougher choice which home is coming to roost; but, given the beneficial another chance to breathe, I would certain the prospectus on the growth will lead its way. I would agree with Mr. Zhang’s view on the downscaling pricing on Real estate and earnings on industrial valued added from the macro economical standpoint; even though the outflow on the cash will definitely affect the deflation or disinflation as to the pricing on the real estate and more local governments and the business sector have to find new sources of growth. Perhaps, I am looking forward on the micro-economical view that Mr. Li can hold on his ten points to reform the financial system. Apparently, it would be more political pressures too when the ECB and FED may sustain their paths to restructure. If Mr. Li’s bottom line is between 7-9% in growth, I think I am getting the relief for my pension invested in China; and I think IMF or World Bank should weight on the sovereignty’s right or look on the micro-economical standpoint that all interest rate operates marketwise would be best on the reality to its reform, instead of being the piper who lead to the rift. Stand fast…. May the Buddha bless you?
Posted on: Sat, 06 Jul 2013 23:48:24 +0000
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