Monday, January 25, 2016

China reaps $460 billion a year from commodity crash


Supportive of their policy transition to more domestic consumption, as the lower prices for imports will lead to more consumption per unit fiscal withdrawal and additionally they are increasing fiscal withdrawals for domestic programs this year.  China domestic situation looking really good for 2016.

Same thing going on in the US though a different situation from China as US domestic policy is not proposing as much growth in fiscal withdrawals as China but the impact of lower import prices in the US would be higher than that of China.

Benefits are rippling through the economy, pushing down or steadying prices of everything from home heating and petrol prices to the cost of raw materials at factories. That’s also boosting China’s efforts to recalibrate its economic growth model away from a reliance on heavy industries and investment toward consumption and services.




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