Chinese Premier Wen Jiabao Sends An Ominous Warning On The Economy

[G_j]

Joe Weisenthal | Jan. 4, 2012, 6:32 AM

This is getting some attention this morning: Comments from Chinese Premier Wen Jiabo in regards to a difficult economy.

From Bloomberg:

Chinese Premier Wen Jiabao said business conditions may be “relatively difficult” this quarter and monetary policy will be fine-tuned as needed.

“We see downside pressure on our economy and elevated inflation at the same time,” Wen said during a two-day trip to Hunan province, according to a statement on the government’s website yesterday. “We also face problems of weakening external demand and rising costs for companies.”

In its first day of trading in the new year, the Shanghai Composite fell 1.3%.



Read more: http://www.businessinsider.com/wen-jiabao-warns-on-the-economy-2012-1#ixzz1iVo5yaFj

[Octafish]

1. Sucker born every minute kick.

[Myrina]

5. I don't recall ... did Dimson see into this guy's soul too?

I think Miss Cleo has a better track record at clairvoyance than ol Georgie does ...

[pampango]

2. Sydney (Aus) Morning Herald: China ready to act after tough first quarter

CHINA has warned its economy may struggle in the early months of this year due to ''difficult'' conditions but stressed it was ready to fine-tune monetary policy to limit any fallout. The policy shift to support growth was announced by the Chinese Premier, Wen Jiabao, and helped buoy global markets, following better-than-expected activity in China's manufacturing sector.

China has been trying to cool an overheated property market, by adjusting rates and borrowing criteria, but there have been mounting concerns growth is tailing off too fast, threatening the global recovery.

In comments published this week, Mr Wen said the first three months of the year would be ''relatively difficult'' and that ''the market is relatively cold - that's the core of current problems''.

The slowdown in Europe and the US has hit China, which is dependent on exports. At the same time, Beijing is anxious to avoid reigniting inflation, which hit a three-year high of 6.5 per cent in July but has since slowed to 4.2 per cent. ''We face problems of weakening external demand and rising costs for companies,'' Mr Wen said. ''We are now in a situation where pressure from an economic downturn and high prices both exist.''

http://www.smh.com.au/business/china-ready-to-act-after-tough-first-quarter-20120104-1pl3w.html

Sounds like they are trying to slow down the economy to control inflation, but don't want to slow it down too much.

[Javaman]

3. Here it comes. Hope you are strapped in. nt

[Uncle Joe]

4. I wonder how much China's currrency manipulation has come to play in this?

Thanks for the thread, G_j.

[Dreamer Tatum]

7. They've undervalued their currency to boost exports

but they have the same credit crisis we had. Oops.

[Uncle Joe]

8. Yes and that policy of undervaluing their currency for too long would explain both ends, a slowdown

in their economy as exports dried up due to our and other nations' economic weakness and it would also foster their inflation.

[Myrina]

6. So it looks like we don't really have to worry ...

... about China's military power. They can fuck us financially any time they'd like - the Army can't do a thing about that.