Monday, March 7, 2016

China says it is increasing deficit to support growth

 China raising the deficit

"We are increasing the debt-to-GDP ratio to support achieving a medium- to high-speed rate of economic growth," said Lou. "Why do we do that? Because we don't want to see a decrease in economic growth and because we want to give strong support to structural reform." -Lou Jiwei

That's how you do it.

The "increasing the deficit" talk is really just about raising spending. That's what they're doing.

Still, it flies in the face of the moronic stuff we hear out of our politicians (including Obama) and all the mainstream ecoomists or, for that matter those in Europe, too, who continue to talk about balancing budgets and austerity.


Tom Hickey said...

Game over. China wins. If they can keep their "liberal" (Western-educated and influenced) economists and policy makers at bay.

Looks like the leadership gets that.

Meanwhile, the economies of the "liberal" countries sink. Except for those at the top.

Of course, the (false) narrative coming out of the "media" in the "liberal" countries paints the opposite picture.

Ignacio said...

Tom never underestimate the power of the legions of imbecile minions chunked by economics colleges all over the West, they are capable of destroying everything which is good in life!

I would equate the power of mainstream economics on western colleges to that of a poisonous parasite eating every host it jumps into.