World markets were down overnight, and the futures market suggested a slightly down open for our market. The reason is that the Chinese are again attacking their problem with inflation, by raising interest rates for the fourth time since October. In addition, they have raised their banking reserve requirements six times, to reduce bank lending. This is in an effort to reduce demand and cool off their economy.
The problem with doing this is that demand from China is driving the world economy. Without their engine, the global economy will slow.
But, what impresses me is that they have a problem, they acknowledge it, and they deal with it. We cannot even get our budget finalized, even though we are now halfway thru the fiscal year. While I wouldn't sacrifice even one percent of our democracy for a dictatorship, I do have to admire their short-term efficiency.
Now, when are they going to admit they have a problem with human rights, acknowledge it, and deal with it?
