SubscribeChina announces more stimulus
The nation’s economic stimulus measures will go beyond the announced 4-trillion-yuan package as more industry-specific policies are rolled out, Premier Wen Jiabao said on Friday.
The government is refining and augmenting the package, because it was "rather preliminary" when announced on Nov 9, he said.
According to the central economic work conference held last month, rural consumption and spending on housing, cars, services and tourism would be the focus of efforts to boost domestic consumption.
My comment: With China spending more money in China that will not allow for investment in US Treasury securities. The lower trade surplus with the US as demand here falls off will also lead to less potential Treasury buying. This is not good as the US is looking to finance $1 trillion in stimulus and roll a large amount of short term debt.
John Polomny
The Real Deal
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