China Should Seek ‘Relatively High’ Deficit

Jan 5 (Bloomberg) — China should seek a “relatively high” fiscal deficit this year to stabilize the economy, Jia Kang, a researcher at the Ministry of Finance, wrote in an article in China Finance magazine.

A growth rate of at least 8% this year is acceptable, Jia says.

6 Responses

  1. At least someone knows what to do. Maybe it’s mainstream over there, but they keep it a secret from their Western counterparts? 😉

    When will the rest follow?

  2. Who, even a decade ago, would have thought that we would be taking economic lessons from the “Commies”?

    Maybe one of them could run for president and solve our economic difficulties.

    1. @Gary Causer,

      Labels, labels. Who, a decade ago, would have thought us “capitalists” would have a government with ownership interests in our largest automobile manufacturer, our largest banks, and an insurance company? Mussolini would have been proud.

  3. the commentary here is priceless!

    ps: they don’t bother with state-owned banks (‘cuz they know that the public/state already “owns” ALL banks; by license charter);

    it’s all in whether you ACT LIKE AN OWNER;

    which needn’t wait on your state owning it’s own bank;

    do you feel that the public owns local/state/fed workers? or policy? or outcomes?

    Stalin would ask: “HOW MANY LOBBYISTS & CAMPAIGN COFFERS DOES MAIN St. COMMAND?”

    when you have many options, it’s imperative to select wisely, and target ONLY the top 3 at any one time; BECAUSE THE REST NEVER MATTER! – by definition – without the top 3 (which yield, & change, every time they’re targeted; which is rare);

    That’s why the MOST SUCCESSFUL campaign strategy throughout history is to distract & divide & direct opponents to irrelevant but inflammatory issues.

    Julius Caesar [~51BC!]: “The Germani are fearsome in person, yet disorganized. Therefore they are easily defeated in battle.” [paraphrased]

    have we learned ANYTHING, as a people? or only as individuals?

    When we’re depending upon Goldman Quacks, to out-noodle sociopaths behind the Noodle Curtain, you know we’re in trouble. The top 3 deal-types being made are all deals between international sociopaths.

  4. Bloomberg has an article about the aging problem in China. It sounds dire. You would not want to be old there, now that the traditional system of families caring for the elderly is breaking down. If these guys are such geniuses why do they allow this to go on?

  5. It’s a big country with lots of researchers, but I wouldn’t give any of them credit for understanding the relative importance of fiscal and monetary policy.

    Broadly, they think their inflation problem is monetary in origin, rather than from fiscal stimulus outstripping underlying productive capacity at current prices. The odds that anyone of consequence there has stumbled upon stock-flow consistent modeling, understood it, and convinced others to act upon it are vanishingly small. Sadly, that’s just about true in the US and Europe as well. Though hopefully that’s changing.

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