China needs an "urgent" tightening of monetary policy to prevent the stimulus inflating stock and property bubbles, warned Qin Xiao, chairman of China Merchants Bank, The Financial Times reported in its Thursday edition. "Monetary policy must not neglect asset-price movements," he writes. "Therefore it is urgent that China shifts from a loose monetary policy stance to a neutral one." The government shouldn't be afraid of a "moderate slowdown," he said. Full story at http://www.ft.com/cms/s/0/e33078cc-be6c-11de-b4ab-00144feab49a.html
In reference to your link: http://www.ft.com/cms/s/0/e33078cc-...144feab49a.html Chinese have done the world a favor by not selling US Treasury bonds and switching from export driven economy to domestic consumption of which, have benefited the west in their exports to the chinese. What had the so called "richest nations" in the west done? They are not even close to the largest US Treasury bonds/notes owners than the "developing nation" China. Heck, not even India or Brazil. Iraq war costs $3 trillion according to Nobel Laureate Stiglitz. The sum translates to about $10,000 per person including babies. What have we gotten in return? One dead Saddam and one million iraqi civilians who had nothing to do with 9/11 but lotsa "shock and awe". $3 trillion is about 4X more than chinese reserves whivch took decades to build. Go figure how much financial bailout costs per amercans including babies. Who were the bunches/ethnic crackheads who caused the Great Depression and now the Financial Crisis? Well. they voted them in and that's what you got. In the end, its haves and have nots. I have taken careof mine and my next generation. How'bout yours?