China Cuts Rates: Good or Bad News?

[errolanderson]

Peoples Bank of China cut their lending
rate 31 points overnight. This is the
2nd rate cut in a month. Has the Chinese
economic miracle popped?

For China to cut rates this aggressively
is not good news. Ironically, the market
may try to play the rate cut as good
news which may last about 24 hours.

China appears desperately trying to
maintain growth at 7.5% A drop to 6%
growth spells a serious recession for
them.

[crusher]

Glass is more than half full. Canola off to the races again this morning.

[bucket]

6 percent is still growth. Anywhere else
in the world growing at that rate.

[errolanderson]

bucket . . . 6% growth is a serious hard
landing recession for the Chinese. It will
impact their purchasing power. Their
economy is in an unsustainable bubble
right now . . . that is showing serious
cracks IMO.

[riders2010]

Are they gonna eat less?

[errolanderson]

they'll eat cheaper

[bucket]

Maybe they will start eating bears.
Good luck eating cheaper.

[crusher]

bucket,

Funniest quote I've heard all week!! Errol better get some spray.

[Hopperbin]

In my opinion China's growth needed to cool down. Errol thinking that a 6 percent growth rate is a recession where do people get this from. Then you comment they will eat cheaper, think about they will have more disposable income per person, they will be eating better. They place a high priority on the value of the food they eat. As farmers we are starting to notice the money flow and investment potential that the Chinese citizens have gained with 10 percent plus growth.

[cottonpicken]

Imagine this scenario.

Nobody at the top really ever had a clue and now that
the ship has hit an iceberg nobody still really has a
clue,except that we are in trouble and 600 of the
worlds top bankers have jumped into lifeboats and
quit in the past 6 months(true fact),and the new guys
at the helm all learned keynsian economics in
university(along with a few here)so the maps they are
looking at are completely wrong and are steering
straight north to more icebergs and if one of them
picked up the right map,austrian economics we might
be able to head south,like hawaii,but we are heading
straight to a cold hell,an island called currency
debasement.

Ecb and britain made surprise cuts to.