Sunday, November 9, 2008

China Goes for High End of Stimulus Range, ~2.5% of GDP

Another known unknown is known.

Now, we'll find out just how much domestic demand is really there... [Update: Gold rallies, so ...]

I haven't read much follow-up on this. It will be interesting to see how much risk the Chinese are willing to take, at this time, in pursuit of their own hegemony, given their massive dollar reserves:

On Friday morning [October 24th], the ASEAN group of Southeast Asian states agreed at talks with Japan, China and South Korea to upgrade a long-established $80 billion web of currency swap lines among central banks in the region.

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