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China Premier Warns Against Loose Money Policies

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http://www.reuters.com/article/2013/11/05/us-china-economy-idUSBRE9A403L20131105

China needs to sustain economic growth of 7.2 percent to ensure a stable job market, Premier Li Keqiang said as he warned the government against further expanding already loose money policies.

In one of the few occasions when a top official has enunciated the minimum level of growth needed for employment, Li said calculations show China's economy must grow 7.2 percent annually to create 10 million jobs a year.

That would cap the urban unemployment rate at around 4 percent, he said.

"We want to stabilize economic growth because we need to guarantee employment essentially," Li was quoted by the Workers' Daily as saying on Monday. His remarks were made at a union meeting two weeks ago but were only published in full this week.

Yet even as authorities keep an eye on growth, Li sounded a warning on easy credit supply, which he said had exceeded 100 trillion yuan ($16.4 trillion) in the world's second-biggest economy.

"Our outstanding M2 money supply has at the end of March exceeded 100 trillion yuan, and that is already twice the size of our gross domestic product (GDP)," Li was quoting as saying.

"In other words, there is already a lot of money in the 'pool', to print more money may lead to inflation."

Trouble is you can't grow forever at some point China will have a recession, currently they appear to be doing everything possible to avoid one. Politically it's going to get very interesting in China when a correction finally does occur.

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http://www.reuters.com/article/2013/11/05/us-china-economy-idUSBRE9A403L20131105

Trouble is you can't grow forever at some point China will have a recession, currently they appear to be doing everything possible to avoid one. Politically it's going to get very interesting in China when a correction finally does occur.

If we are not buying their tat as much, who is ?

Growth of 7%....that's some going in these economic times.

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The problem is not growth, it's the distribution of wealth.

Ideally there would reach a sustainable equilibrium of population that growth is linked to. More machines are brought in to replace labour so people have to work less.

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If we are not buying their tat as much, who is ?

Growth of 7%....that's some going in these economic times.

Berhaps Berkanke and Carney can prints lots of money, keep buying their tat and once it arrives onshore burn it on a big bonfire. That solves two problems, credit expansion and unemployment rates in China.

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The problem is not growth, it's the distribution of wealth.

Ideally there would reach a sustainable equilibrium of population that growth is linked to. More machines are brought in to replace labour so people have to work less.

With wealthnowadays comes inflation, so multiplying up the effects of wealth distribution. Besides, why not 7,3% or 6.8%, these figiures are meaningless in many ways, i is what you get out of the growth, stability, improved services nad infrastructure, improved production methids and quality, stable fiannces, less debt, retirement provision, savings, logn term investment. We have nutters printing like lunatics, bailing out fraudsters and nearly every one of those in the list has suffered as a result.

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