Posts Tagged ‘mistake’

China, making the same mistake with Japan?

Alexei Kudrin , Russian Minister of Finance said yesterday: “China is making the same mistake with Japan” . He said there are a hyperstimulation plan in economy area, it will bring huge risk to China, in current China have many problems, but them can not feel it because this plan.

OK, at first I think as a Chinese we should thanks for Alexei told use his really thought, We can found there many other people praise Chinese just for get more profit, at lease Alexei is not a  pretense person.

Then let’s face our problem, in current months, although CPI shown it is negative growth , but in really life we found the price of many thing is still rising, there have report said in recent one year, the price of house rise up more then 75%, in many city, the price of house had over USA and UK! Now the price of water and price of power is still rising up , eggs, meat…, the price of many many things is still rising…..

Because we have a huge plan in macroeconomic, but we lose the control in microeconomic , we offten heard sad stories, that make us angry, for example: CCTV reported, in china, we only need not mroe than 5 Polysilicon factory , but we have plan to build about 100 factories, the profit of this industry is more than 300%, but in a short time, the price of Polysilicon dorp 50%. It let me remember the sad story of “VC”.We must improve our efficiency, in some hot area of big city ,the housing vacancy rate more than 50%, but the city is still build skyscraper crazing! Why! The most of people have not money to buy a house, but the housing vacancy rate more than 50%, WHY?

These money is come from debt, it’s the result of chinese work hard  more than 30 years after reform, somebody are waste people’s money. We muse believe the power of people, if these in people’s wallet, they will create company,consumption…, and because these money is belong themself, the plan of every people will more efficiency then these agent.

Now, the most of people can not support buy a house, can not get a efficiency health care system, lack of social security, so every body had to store they money, but the truth of the savings is, the average deposits of every chinese is not more than $1000 …..

I have no time to write more, I had to go out now, but I think we should thank Alexei Kudrin , we must really face the require of people, face the truth, not just read report or believe numbers , and say we is powerful, that is not the truth.