Friday, November 28, 2008
New Efforts for Stimulus in Europe and China
EU outlined an $258 billion proposal to stimulate the spiraling world economy due to the American sub prime mortgage crisis. China after announcing its $590 billion stimulus plan, the People's Bank of China has lowered its by 0.54% and cut the reserve ratio by 1% for larger banks and 2% for smaller banks. Though demands for real estate mortgages has slowed, lower interest rate would encourage small and medium size businesses to take out loans to help them through this economic down turn. China's $590 billion stimulus plan is largely hinges the ability for banks to create loans and fully employ the money multiplier effect.
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I don't get Congress. We sit and worry and bitch about China catching up to us, and think long and hard how we will be able to keep them at bay, and they come up with this $590 billion stimulus package, and we are still here pondering what we should do. This is how China will pass us by. If they do any time soon, this is the moment. They are taking the necessary steps to boost their economy and we are doing nothing. And forget president's lame duck status. He is the president, and he should be doing something about this mess. You don't just wait for the next guy but Obama or whoever. You are the president!
The Republicans are worried about smaller and bigger government. How about they worry about fixing the economy. And the size of government like quadrupled in the past eight years. I don't know exactly off the top of my head but it's a ridiculous number.
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