US has absolute nothing to do with it

I think Chinese government's economic policy is insane. All the senior citizen depending on fixed income are doomed. Really don't know who is behind that?

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M2, China's broadest measure of money supply expanded at an annual 17.8% clip in February, and outstanding bank loans climbed 17.2 percent. New lending was 981 billion yuan for the first two months combined, almost a third of the total for all of 2006. Factory output in January and February combined grew 18.5%from a year earlier, blowing past the 16.2% rise logged in the first two months of 2006.


The PBoC drained 655 billion yuan from the banking system in March with T-bill sales, and guided the widely watched 7-day repo rate from as low as 1.5% in mid-March to 2% today. The Chinese central bank can issue one-year yuan T-bills at 3% in Shanghai to soak-up excess cash and deposit the funds in US 1-year bills at 5.25%. Thus, the PBoC has become the world's largest "yuan carry" trader.

But the 7-day repo rate remains far below the 2.7% consumer price inflation rate, indicating that China is still pursuing a super-easy money policy. Beijing has only allowed the yuan to appreciate by 1% so far this year, by printing enormous amounts of yuan to keep its currency artificially low.

所有跟帖： 

• agree, im trying to convince them to transfer part of their $ ou -一块五一卷- ♂ (0 bytes) () 04/10/2007 postreply 21:04:15

• I told them to hold stock/ funds, -Aceofspades- ♀ (19 bytes) () 04/10/2007 postreply 21:06:30

• what if a big correction comes or you picked some bad stocks? -一块五一卷- ♂ (0 bytes) () 04/10/2007 postreply 21:08:17

• not likely in near term -Aceofspades- ♀ (90 bytes) () 04/10/2007 postreply 21:11:16

• you're suggesting to buy now and hold until 5999? ;) -一块五一卷- ♂ (0 bytes) () 04/10/2007 postreply 21:12:55