CHINA’S Latest Response to the GLOBAL Economic Slowdown: Reuters

The title of a Reuters article released on June 11, 2012 is “China loans rise COULD show government steps GAIN traction” (Web-site/URL: http://www.reuters.com/article/2012/06/11/us-china-economy-idUSBRE8590G920120611). “could” is TENTATIVE/NOT a guarantee.

“China’s bank lending in May (2012) rose MORE than expected, suggesting fast-tracked infrastructure projects were creating loan demand and that measures to counter a sharpening economic slowdown MAY be taking affect“. Again“may” is TENTATIVE/NOT a guarantee.

“New loans figures followed a flurry of May (2012) data at the weekend (June 9-10, 2012), which reinforced the view China is heading for its sixth quarter in a row of SLOWING growth and helping to explain a surprise interest rate cut last week (June 4 – 8, 2012)Beijing’s BOLDEST action yet to underpin economic activity”.

“The central bank said on Monday (June 11, 2012) that banks issued more than 793 billion yuan ($124 billion) in fresh loans in May (2012), up from 682 billion yuan in April (2012) and stronger than 720 billion yuan EXPECTED by financial markets“. EXPECTATIONS, as we know, are often INACCURATE (Web-site/URL: http://www.youtube.com/watch?v=NgnAY_eXYbI).

According to He Yifeng, “an economist at Hongyuan Securities in Beijing“, “The rise is due to MONETARY EASING and, more importantly, THE GOVERNMENT‘s quickening approval for new investment projects“. Since He is working in BEIJING, it’s only natural that he would sing praise to the Communist government.

According to Xianfang Ren, “an economist at IHS Global (Insight) in Beijing”, “The slide in (the) PPI (Producer Price Index)points to considerable SLUGGISHNESS in DOMESTIC manufacturing activity“. “considerable sluggishness” has VERY NEGATIVE connotations. We know this and yet, China is still obsessed with EXPORTS. The Chinese are obsessed with exports and THEY CAN’T EVEN KEEP THEIR OWN HOUSE IN ORDER with many ordinary Chinese people living in poverty.

“China’s Commerce Minister, Chen Deming, was paraphrased as saying by THE OFFICIAL Xinhua news agency”, “The trade situation is still RELATIVELY (?) grimThis is only because the situation IS NOT in China’s favor/This is THE CHINESE INTERPRETATION (Web-site/URL: http://www.youtube.com/watch?v=NgnAY_eXYbI). “IF LUCKY (?), we will be able to keep annual growth of around 10 percent”“if lucky?” Considering that many countries are struggling to grow at all or  even CONTRACTING/experiencing NEGATIVE economic growth, this is another sign of China’s ARROGANCE, which, again, is a fundamental characteristic of “Difficult People” (Web-site/URL: http://www.youtube.com/watch?v=NgnAY_eXYbI). 10%
is “lucky?” What is UNLUCKY? Let’s also note that “official” channels will ONLY express the “official” or GOVERNMENT opinion.

According to Chen Lifeng, “vice general manager of Ningbo Tengsheng Garments in the eastern coastal province of Zhejiang”, “We HAVEN’T seen ANY improvements – our orders ARE NOT fullOur market is Europe and WE DON’T KNOW WHETHER AND WHEN demand will pick up“. In other words, for Ningbo Tengsheng Garments at least, there is MASSIVE UNCERTAINTY.

“Ye Lianghua, deputy general manager at Ningbo Cixi Import and Export, also in Zhejiang, said China’s high exports growth is a thing of THE PAST. “IT’S OVER. It will be good to have a STEADY growth rate,  EVEN IF it’s LOWER than before“. THIS IS TRUE. As the saying goes, it’s better to be STEADY rather than SPECTACULAR and then ERRATIC, although that certainly won’t sit well with some – like HONG KONG Chief Executive DONALD TSANG and MACAU tycoon STANLEY HOThese two people think – and TRULY BELIEVE – that China does EVERYTHING right and support/agree with China on EVERYTHING from ECONOMIC GROWTH to DELAYING DEMOCRACY.

Finally, according to Wang Jun, “an economist at the GOVERNMENT-BACKED think tank CHINA Center for INTERNATIONAL Economic Exchange”, Monetary policy (dealing with the MONEY SUPPLY) should continue to lean towards LOOSENING. Again as we’ve said on numerous occasions, “China” and “International” often DON’T go well together.

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