MercoPress. South Atlantic News Agency
China cuts banks' reserve ratio to bolster lending and a weak economy
China's central bank is to cut its bank reserve requirement ratio by one percentage point. The People's Bank of China said that the new reserve requirement would take effect from Monday. The aim is to stimulate more lending into the nation's slowing economy. Read full article
Comments
Disclaimer & comment rulesLess and less growth from every yuan spent.
Apr 20th, 2015 - 08:52 am - Link - Report abuse 0This is EXACTLY what you don't do!
Apr 20th, 2015 - 11:03 am - Link - Report abuse 0When the crash comes the banks will not be able to cover their liabilities.
Will the commie government bail them out?
Or will there be civil war and rebellion?
They've tried through many years and many “stimulants” to revive this dying economy.
Apr 20th, 2015 - 12:47 pm - Link - Report abuse 0It won't work.
The model is done.
They're going to be stuck with a Zombie bankings system that has no assets and there's no enough $ in China to fix it.
They will have their citizens losing generational (3+) worth of savings.
At some point their going to have to let the property bubble pop, business and bank fail and see where they are in the end.
My guess it will end in riots, hunger, murders just like every Commie gov't ends.
Regional gov't breaking away from the Central Gov't and an out of control Military.
Let's see.
China's population demographics are seriously messed up:
Apr 20th, 2015 - 05:39 pm - Link - Report abuse 0http://en.wikipedia.org/wiki/Demographics_of_China#/media/File:China_Sex_By_Age_2010_census.png
When that bulge of people retire in over the next 20-40 years with no one to replace them they are going to be in dire trouble. Even worse though, look at the gender imbalance; that's horrific.
Already it is happening. Predictions for China's population continue to be optimistic.
Apr 20th, 2015 - 10:35 pm - Link - Report abuse 0China's working age population began declining 3 years ago and has already tallied 10 million less in that time. Within 5 years it will probably be declining about 10 million a year.
It entire population was once going to start declining in the 2030s then about 2025 and now is estimated at 2020.
The lowest population estimate for China in 2100 is for about 600 million. Less than half.
China recently eased its one child policy and the resulting baby boom they expected was quite disappointing.
China will get before it will get rich.
Its pretty hard to afford a baby when you have 100s of millions making less than U$1.25/day.
Apr 20th, 2015 - 10:44 pm - Link - Report abuse 0A few years ago people in the USA were talking about a “growing strength of China” now you never hear anything about it. Nobody cares. There's a definate sense their time is over. All you hear now is about Reshoring, Mexico and Vietnam to a lesser extent.
What does China have if it doesn't mfg?
Nada
To be fair to China, it had to curb its population growth, no choice.
Apr 20th, 2015 - 11:35 pm - Link - Report abuse 0A lesson India has yet to learn.
There are probably no soft landing in either case, however China is better placed to survive the inevitable “re-adjustments” coming, than India will be.
I remember when Japan became the world’s second largest economy, with confident predictions how in x number of years they would overtake the US.
Never happened.
Because all such prediction rely on the premise that things continue on as they are, which is the one thing that never happens for too long.
Yes Pugol
Apr 21st, 2015 - 02:01 am - Link - Report abuse 0I've been saying that for a while. If you go back further they even once thought the USSR would overtake the US. The US reinvents itself while Russia, China and Japan thought their system was so strong and successful that they didn't need to reinvent until it was too late.
China's one child policy (OCP) is now being recently reevaluated on its success. The birth rate dropped considerably before the OCP and the difference may only equate to less than 200 million people. What it did create (along with India) was an extremely skewed sex ratio. Over 30 million men that will never marry and procreate. That will impact demographics as well.
The world has never seen a population collapse like what China is heading for. The richer and more educated the Chinese become the less children they want. This has happened in all societies on all continents.
I once did an analysis of China's demographics and China is already at Japan's demographic level of 1991.
China was much much richer in 1991 than China is now or will be in the next 20 years. I can't wait for the next census.
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