No probs, ready to answer, just as soon as you've addressed these you missed:
Is Australia facing the first recession in 20 years?
- Thread starter hobo-jo
- Start date
Spanish banks bailed out to the tune of 100 billion euros. Was only a week ago that they only needed 30 billion.
http://www.theaustralian.com.au/bus...rozone-contagion/story-fnawdwo8-1226390224408
Cyprus now has its hand up for a bail out. Greek elections due next week.
It's going to be a volatile week ahead.
http://www.theaustralian.com.au/bus...rozone-contagion/story-fnawdwo8-1226390224408
Cyprus now has its hand up for a bail out. Greek elections due next week.
It's going to be a volatile week ahead.
Originally Posted by hobo-jo
So what are the details of the new Chinese stimulus package then turk? Can you break down the details for all those reading the thread?
Originally Posted by hobo-jo
I think I asked this pages ago, but what specific actions has the Chinese Government announced which you consider to be stimulus? Or are you sticking with your rate cuts alone are stimulus story?
hobo,
in answer to these question, here are some details.
http://www.economist.com/node/21556308
DURING a trip to Hubei province in central China from May 18th to 20th China’s prime minister, Wen Jiabao, argued that the government should give “more priority to maintaining growth”. This was hardly a bombshell. His words nonetheless reassured investors who felt that the government had been late in reacting to the sharp slowdown in China’s economy revealed by a run of bad figures, including a drop in industrial growth to its most sluggish rate since mid-2009.
A few days later the government began to back his words with deeds, speeding the approval of infrastructure projects, permitting three huge investments in steel plants, and increasing its financing for public housing. This came on top of 36 billion yuan ($5.7 billion) of subsidies for energy-saving household appliances and ongoing efforts to increase bank lending[/SIZE]. The Ministry of Railways, for example, said it had secured a generous line of credit.
This was a “mini-me” stimulus, according to Stephen Green of Standard Chartered, a diminutive clone of the November 2008 package unveiled in response to the global financial crisis.
----------------
the People's Bank of China cut its one-year lending rate by a quarter of a percentage point to 6.31 per cent. Banks will also pay less interest on deposits, with the deposit rate dropping from 3.5 per cent to 3.25 per cent.
On top of the cuts, Beijing shocked economists by partially liberalising interest rates. In an attempt to amplify the effect of the rate cut, it relaxed rules so that banks can offer a 20 per cent discount to the benchmark lending rate, compared with a previous level of 10 per cent.
Read more: http://www.theage.com.au/business/r...oorer-shape-20120608-201gq.html#ixzz1xToMHUvr
-----------------------
http://www.businessweek.com/ap/2012-06/D9V8TI600.htm
China cut state-set gasoline and diesel prices for the second time in a month on Friday
Diesel prices will be cut by a similar amount,
Beijing also announced that it will for the first time allow banks to pay deposit rates higher than the state-mandated level. That might help to shift money to households and boost consumer spending.
The looser controls on deposit rates might prompt banks to raise rates to the official cap as they compete to attract and keep depositors, analysts said.
"This too should help stimulus efforts," said Qinwei Wang and Mark Williams of Capital Economics
The government has also approved a multibillion-dollar wave of major investments by state companies.
Beijing is unveiling new measures almost daily to shore up growth that slowed to 8.1 percent in the first quarter
----------------
In the above post are some details of the stimulus package announced to date, some of these that I already have listed on this thread but you in your wisdom do not consider them to be stimulus, examples below
In post #124
The National Development and Reform Commission may be accelerating construction approvals as part of China’s response, with the planning agency last week saying that Baosteel Group Corp. and Wuhan Iron & Steel Group won permission to build 134 billion yuan ($21 billion) of new factories"
and
"Agencies including the finance ministry, agriculture ministry and the securities regulator will introduce their own measures to stabilize growth, Xinhua said."
In your opinion this is "growth accommodating policy", not a stimulus package.
Would you please(if this is not a figment of your imagination) post some references to this setting out exactly what this policy entails?
I can find no trace that such a thing exists.
----- -----------
When I posted the following
Would you call this measure a "stimulus"
"China cuts key rate to boost economy "
Your reply was
I don't consider rate cuts to be considered stimulus (post GFC use of the word generally refers to cash handouts/bailouts).
Would you please post creditable references to where rate cuts are not considered "stimulus"
and what should be the easiest as you claim this to be generally in use, references to where this is been used.
"post GFC use of the word generally refers to cash handouts/bailouts"
Surely these aren't further figments of your imagination?
In post #124
The National Development and Reform Commission may be accelerating construction approvals as part of China’s response, with the planning agency last week saying that Baosteel Group Corp. and Wuhan Iron & Steel Group won permission to build 134 billion yuan ($21 billion) of new factories"
and
"Agencies including the finance ministry, agriculture ministry and the securities regulator will introduce their own measures to stabilize growth, Xinhua said."
In your opinion this is "growth accommodating policy", not a stimulus package.
Would you please(if this is not a figment of your imagination) post some references to this setting out exactly what this policy entails?
I can find no trace that such a thing exists.
----- -----------
When I posted the following
Would you call this measure a "stimulus"
"China cuts key rate to boost economy "
Your reply was
I don't consider rate cuts to be considered stimulus (post GFC use of the word generally refers to cash handouts/bailouts).
Would you please post creditable references to where rate cuts are not considered "stimulus"
and what should be the easiest as you claim this to be generally in use, references to where this is been used.
"post GFC use of the word generally refers to cash handouts/bailouts"
Surely these aren't further figments of your imagination?
Can you provide an example where rate cuts (e.g. in Australia for example) are referred to as stimulus?
It's in your USER CP.
Happy to answer your questions.
This link posted in answer to your previous question does exactly this
http://www.businessweek.com/ap/2012-06/D9V8TI600.htm
China cuts rates, fuel price in new stimulus moves
Hobo-jo
You don't seem very keen to answer this question. Are you not so sure now that Australian will experience a recession in the near future.
hobo
No semantic bickering on my part.
In my first post I answered the following questions that you specifically asked me to answer.
Originally posted by hobo-jo
So what are the details of the new Chinese stimulus package then turk? Can you break down the details for all those reading the thread?
Originally Posted by hobo-jo
I think I asked this pages ago, but what specific actions has the Chinese Government announced which you consider to be stimulus? Or are you sticking with your rate cuts alone are stimulus story?
I answered the questions using quotes from reputable news sources, the only
statement from me in the post was
"in answer to these question, here are some details."
No semantic bickering, or arguing over specific terms and words there.
---------------------
The second post I asked for references to 3 things as I have never heard of
"growth accommodating policy",
or that
"cutting interest rates wasn't "stimulus"
or that
"post GFC use of the word(stimulus) generally refers to cash handouts/bailouts"
Referring to the above 3 things as figments of your imagination may have been a bit forward but you had no problem with dishing this type of statement out in your posts
Post#198
"You're clearly out of your mind"
But still no semantic bickering, or arguing over specific terms and words there
I consider that a number of your posts here are based on the theory that
bull**** baffles brains and that you have spat the dummy when challenged and you don't have the answers.
Others who read this thread will make up their own mind.
I thought it was pretty obvious from my response:
"I think there are more individuals and businesses hurting financially/economically than the GDP by itself would suggest."
Yes I think we are heading into a downturn which will lead to recession. Probably not as close as I envisioned 12 months ago.
29 others thought the same, would be interesting to find out if their minds have changed after a single GDP print.
I was around 6 months out with the peak of the property market as well, but look where we are a couple of years later
i wholly agree with this statement.
Is Australia experiencing growth or a recession?
If you think we’re slowing down, you’re right.
And if you think we’re booming, you’re right too.
Everybody has heard of the two-speed economy and yet here we are debating about an average that doesn’t exist. We have a Boom Oz and a Doom Oz in different parts of the country with little overlap, and depending where you belong you will feel boom or doom.
- The Boom Oz: 20% of population, higher growth than China, exponential investment, acute lack of workers.
- The Doom Oz: 80% of population, anaemic growth, practically no investment, companies laying off and empty shops.
- The Average Oz that only exists on paper and in the minds of government, RBA: growth at trend, employment at trend. interest rate at trend.
In fact Boom Oz is even working against Doom Oz by inflating the A$, preventing lower interest rates and getting their workers from overseas. Doom Oz is working against Boom Oz by sucking tax revenues and refusing to move to Boom Oz.
Doomers are 4 times as many as Boomers, which explains why surveys show that most Aussies aren’t happy despite the government telling them to be so.
Doomers don’t believe the mining tax is going to “spread the wealth around” because they think it’s a furphy, therefore they continue to believe in Doom.
Boomers believe their Boom will continue too because they too think the mining tax is a furphy.
We’re stuck.
That’s my long-winded answer to the question “Is Australia facing a recession”.
If you think we’re slowing down, you’re right.
And if you think we’re booming, you’re right too.
Everybody has heard of the two-speed economy and yet here we are debating about an average that doesn’t exist. We have a Boom Oz and a Doom Oz in different parts of the country with little overlap, and depending where you belong you will feel boom or doom.
- The Boom Oz: 20% of population, higher growth than China, exponential investment, acute lack of workers.
- The Doom Oz: 80% of population, anaemic growth, practically no investment, companies laying off and empty shops.
- The Average Oz that only exists on paper and in the minds of government, RBA: growth at trend, employment at trend. interest rate at trend.
In fact Boom Oz is even working against Doom Oz by inflating the A$, preventing lower interest rates and getting their workers from overseas. Doom Oz is working against Boom Oz by sucking tax revenues and refusing to move to Boom Oz.
Doomers are 4 times as many as Boomers, which explains why surveys show that most Aussies aren’t happy despite the government telling them to be so.
Doomers don’t believe the mining tax is going to “spread the wealth around” because they think it’s a furphy, therefore they continue to believe in Doom.
Boomers believe their Boom will continue too because they too think the mining tax is a furphy.
We’re stuck.
That’s my long-winded answer to the question “Is Australia facing a recession”.
By the way the RBA Governor has written in the past about the resources boom and resulting terms of trade. This was a worthwhile read from last year:
http://www.rba.gov.au/speeches/2011/sp-gov-230211.html
http://www.rba.gov.au/speeches/2011/sp-gov-230211.html
Hi Hdb
Whether we have a recession or not depends very much on what happens in China as it is one of the main drivers of our economy.
The Chinese rate of growth has been slowing but being such a strong economy they have a great deal of firepower to lift the growth rate.
Thus the stimulus package now being put in place is aimed at stabilising the growth rate, one advantage they have over us is that being an authoritarian Government they have stronger control over their economy.
The Chinese put a package in place during the GFC which proved to be very successful in increasing growth.
Similar threads
