Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

Saturday, May 9, 2009

China CCP Wants Farmers to Bail Out Economy

CCP Chinese Communist Party Wants Farmers to Bail Out The Economy !!!

China's exports have been hit hard as the financial crisis cuts down global consumption, and the Chinese regime is hoping the nation's farmers will fill the gap. The regime is offering a 13 percent subsidy on the cost of household appliances in a bid to boost domestic consumption, which accounts for only 35 percent of the nation's GDP. But while state-controlled media say the scheme has been a success, farmers tell a different story.
Global consumption has been hit hard by the global financial crisis. Official statistics show that China's exports have fallen for the past five months.

And with home appliances making up half of China's export revenue, the Chinese regime is looking to the nation's farmers to reignite the economy by buying surplus stock.

Launched in February this year, the Rural Home Appliance Subsidy offers farmers 13 percent off the price of appliances such as televisions and refrigerators.

State-controlled media outlet Xinhua news says the plan has been a big success, and sales of household appliances in rural areas had surged more than 70 percent.

But this farmer from Yantai in Shandong Province, says he doesn't know of anyone who bought appliances.

I didnt buy any. Nobody around me bought any. Hardly anyone bought any. Not even one percent. Those who can afford appliances have bought them already. Those who couldn't afford them still can't afford them. Appliances aren't like food or other consumables. You only buy a new one when the one you have is broken."

Another farmer from Zhongjiang, Sichuan Province says most farmers dont have the money to buy these kinds of items.

Generally, farmers are too poor. The only people taking advantage of the Rural Home Appliance Subsidy are government officials. To be honest there aren't many ordinary citizens buying appliances.

Former Boston University economics scholar Dr. Jian Tianlun says that China's economy has relied too heavily on exports, leading to an oversupply of goods. Dr. Jian doubts the plan will work.

[Jian Tianlun, Former Boston University Economics Scholar]:
Over the past six months, more than 20 million migrant workers have returned to their villages from major cities due to the decline in exports. The migration is still continuing. This will probably affect their household income. So I don't feel optimistic about the Rural Home Appliance Subsidy."
Source NTDTV

Asia Market Reports

Asia Banks Jump :

Asian markets jumped today, ahead of a possible European Central Bank rate cut. Regional investors are expecting to see the central bank cut rates to a record low of one percent. Results of the U.S. bank stress test also come today, and the Treasury Department has said none of the 19 banks are at risk of insolvency. Japan's Nikkei rallied after a 3-session holiday to a 6-month high, led by soaring financials like Mitsubishi UFJ. Sumitomo Mitsui rose sharply after it said it will buy Citigroup's Japan brokerage for $5.9 billion. Seoul shares hit a 7-month high led by Korea Exchange Bank, which surged after a report that Korea Development Bank was considering buying the lender. And a surprise rise in Australian employment helped lift Sydney stocks, while News Corp gained after chairman Rupert Murdoch said the worst effects of the recession are behind the media company.


Market Report - Asia on Hold :

A recent surge in Asian shares lost their steam ahead of U.S. monthly jobs data which will help signal whether the global economy has hit bottom.

U.S. bank stress test results were out after the close of Wall Street on Thursday. They offered little surprises, showing less capital is needed to keep the banks afloat than previously feared.

A further dose of confidence on the economy will be key in extending the rally in global stocks.

Asian shares, for example, are up about 9 percent this week, bringing gains since their 2009 low in early March to around 51 percent.

There are, however, reasons to worry.

A weak U.S. bond auction raised questions on how much the world's top economy will have to pay to attract investors like China to finance its big stimulus plan.

Some of the optimism about stocks was also affected by a disappointing trading debut in Hong Kong for Zhongwang, Asia's largest maker of aluminum extrusion products.

And corporate earnings were also in focus with companies like Toyota and Toshiba announcing steep losses.


Source NTDTV
Jim Rogers "the 19th century was the century of the UK , the 20th century was the century of the US , the 21 st century is going to be the century of China "
Related Posts Plugin for WordPress, Blogger...