Global Recession?

The following Citation is from China Daily of today: "The State Council has approved 2 trillion yuan ($292 billion) for the construction of a series of railway projects, to help boost economic growth amid the worldwide financial crisis. Increasing investment in fixed assets has remained a catalyst of China's economic development. By 2010, the total length of China's railway will reach 90,000 km, according to the Ministry of Railways. A number of major railway projects will be started soon, - the country's leading economic news portal - quoted Wang Yongping, spokesman for the Ministry of Railways, as saying on Friday. About 1.2 trillion yuan has already been allocated, he said. Zheng Xinli, a senior government policy advisor, said: "In 1997, we dealt with the Asian financial crisis by stimulating domestic economic growth by investing in the construction of highways. This time the money will go on improving the rail network." The National Development and Reform Commission is developing plans to improve the country's railway systems, he said. (China Daily October 25, 2008)"

Whereas the American and European Governments have to float more than a trillion of Dollars into our banking system to avoid it collaps, the Chinese government has the means to invest 297 billion Dollars into their railway system, not only to improve the country's infrastructure, but also as a means to enforce the internal market. If the financial crisis of today will not result into a longer lasting world wide recession this will only be thanks to the Indian and Chinese economies, which have produced an enormous amount of wealth and productive power in the last 15 years. I also would like to see the faces of all those people, who are now smirking about the USA! The Euro was yesterday on a long years low against the Dollar (1.29 US for 1 Euro against 1.6 USD for 1 Euro in July). The tentatives of American capitalism to make money by selling shit on paper are surely one of the reasons for the now financial crisis. I only think/fear that the flexibility of the American economy will make it much easier for them to come out of the crisis than for the Europeans, who will now start a stupid discussion if "more state control" of the economy is necessary.

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