My comment: Today, two indicators show that this phase of the crisis is over and we are clearly in the third phase of the U.
First of all, demand of credit rose to record again in March (1). China ´s economy is getting pace. Secondly, foreign reserves rose up to $1.95 trillion, record again. That is good, that it also pushes inflation. I cannot deny that they are good news. But they are not news for celebrations, rather they must make us think in the next phase of this crisis and prepare it carefully. Yes, China´s economy is getting pace. It should make us think that we should not force that pace to grow faster than its natural pace. Now, it is time to move slowly behind the curve and to let economy to grow by its own forces. Hyperinflation will threat us within one year more or less. If we overheat economy now, we will not be able to avoid the hyperinflationary phase and it will beat us hard. In my opinion, the PBoC should monitor liquity next months more than ever, we will pay hard any excess. Peace and best wishes. Xi (1) China Loans, Money Supply Jump to Records on Stimulus http://www.bloomberg.com/apps/news?pid=20601087&sid=aLyeIFnC8X1U&refer=home China's bank credit hits record high in first quarter http://news.xinhuanet.com/english/2009-04/11/content_11169538.htm (2) China's foreign reserves hit $1.95 trillion at end of March http://news.xinhuanet.com/english/2009-04/11/content_11167852.htm --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
