Navy blocks IMD plan for Chinese radar

Jagdpanther

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So good when you have to spend $2 trillion? China is digging its grave with that kind of overextension.



India...

Wrong pal.

Chinese foreign reserves is $2 trillion. Their goverment spent 2 trillion RMB in the recovery. (1USD=6.83RMB) They haven't spent all their money yet.
 

Armand2REP

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Wrong pal.

Chinese foreign reserves is $2 trillion. Their goverment spent 2 trillion RMB in the recovery. (1USD=6.83RMB) They haven't spent all their money yet.
Wrong pal, the stimulus plan alone was 4 trillion RMB. Regardless of how much was spent, loans totalled almost 10 trillion RMB.
 

Armand2REP

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Yes, stop buying the cheap goods from china and turn your eyes to those expensive Europe or Japn producer. Looks like india has lots of spare money in pocket.

I just imagine how indian leaders could explain to their poor they decide to cut the trade:" Yes, the bad news is you have to pay more for your basic needs. But the good news is that some chineses are suffering more." I think india public will love it.:india:
India is fully capable of supporting her own industries if it passes anti-dumping duties. With cheaper labour and a little help from the state, China will be a distant memory for Indian industrial imports.
 

Jagdpanther

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Wrong pal, the stimulus plan alone was 4 trillion RMB. Regardless of how much was spent, loans totalled almost 10 trillion RMB.
OK,it was my mistake.It was 4 trillion RMB,not 2 trillion.

You said 10 trillion RMB of loans, is necessary to save and recover the economy. In the 2008 crisis, goverment should put enough liquidity to support the market. I don't see anything wrong with that.
 

Armand2REP

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OK,it was my mistake.It was 4 trillion RMB,not 2 trillion.

You said 10 trillion RMB of loans, is necessary to save and recover the economy. In the 2008 crisis, goverment should put enough liquidity to support the market. I don't see anything wrong with that.
What is wrong with that is where all that money was going. Half of it went to state-owned industry to create overcapacity and the other half went to property speculation. Private business hardly got anything. Whats left is an asset bubble and industry with a bunch of products no one is buying. China is entering the same situation the Americans just got hammered with.
 

Jagdpanther

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What is wrong with that is where all that money was going. Half of it went to state-owned industry to create overcapacity and the other half went to property speculation. Private business hardly got anything. Whats left is an asset bubble and industry with a bunch of products no one is buying. China is entering the same situation the Americans just got hammered with.

I don't think so.

The 4 trillion RMB aid plan was not all carried by the central government. The fund was made up by the central & local government, meanwhile private investment was also included. The amount from Beijing was 1.18 trillion RMB, rest will be raised from the local and private.

Nearly 370 billion RMB was to put to the rural area. Including to construct & revamp the road, water purifying, power grid, gas pipe, resident houses.

The infrastructure got invested almost 1.5 trillion RMB to built such as highway network, airport, high speed railway grid, communication system, harbor, power plant & dam.

The education, health care, culture, birth control got 150 billion. Energy saving, R&D for new energy had 210 billion; 370 billion was injected into tech upgrade & redevelop work. Over 1 trillion was planned to reconstruct the 2008 earthquake zone.


So it is not just simply giveing money the the enterprise, every coin has its purpose.
 

Armand2REP

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I don't think so.

The 4 trillion RMB aid plan was not all carried by the central government. The fund was made up by the central & local government, meanwhile private investment was also included. The amount from Beijing was 1.18 trillion RMB, rest will be raised from the local and private.

Nearly 370 billion RMB was to put to the rural area. Including to construct & revamp the road, water purifying, power grid, gas pipe, resident houses.

The infrastructure got invested almost 1.5 trillion RMB to built such as highway network, airport, high speed railway grid, communication system, harbor, power plant & dam.

The education, health care, culture, birth control got 150 billion. Energy saving, R&D for new energy had 210 billion; 370 billion was injected into tech upgrade & redevelop work. Over 1 trillion was planned to reconstruct the 2008 earthquake zone.


So it is not just simply giveing money the the enterprise, every coin has its purpose.
And all those contracts went to state owned firms increasing steel production, cement, copper and anything else used in their materials. Excess capacity squeezes profit margins, hampers innovation and prevents the private industry from competing. The only jobs created from that stimulus are short-lived construction.

You failed to mention anything about the nearly 10 trillion RMB in bad loans floating about the country. Half of it went into real estate which has left so many unaffordable properties, there are entire cities that remain empty. The other half went into boosting capacity into these state owned companies supplying the stimulus for domestic and export increases.

There is a little concept known and Supply and Demand. You increase supply without demand... you go broke. Once the stimulus and wreckless lending ends, these companies will fold. People who borrowed money to buy property will go broke when the real-estate bubble bursts.
 

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