China’s economy expanded last year at 7.8pc – its slowest pace in more than a decade – and recent data has fuelled concerns that any rebound in the country’s growth is losing steam.
However, the OECD was upbeat, predicting in a new survey of China’s prospects that the country’s economy could expand by 8.5pc this year and by 8.9pc in 2014.
While the OECD noted the slowdown in China’s aggressive expansion, it nonetheless predicted that growth should average 8pc in this decade at current rates of investment and reform.
After allowing for price differences, it forecast that China could become the world’s largest economy, overtaking America, around 2016.
High debt is a drag on growth. You’re using sooo much money for debt service (paying interest) that could have gone to pay for more useful activity… education, roads, technology, etc.
China’s economy grew at nearly 8% last year. U.S.’s economy grew at less than 1/2 that. (Thanks Obamacare and businesses fearing other Obama policies.)
Also worth noting that this story NOT being carried by any major U.S. news organization save the Washington Post and CNN International. Not even a single link / page to the regular CNN site despite the story begin pick-up by Reuters news service. To ABC/NBC/CBS/MSNBC and yes, even Fox this story is not news worthy.
In a separate report, a sharp rise in gasoline costs drove up wholesale prices last month by the most in more than three years. But outside energy and food, price gains were mild.
Initial claims for state unemployment benefits rose 15,000 to a seasonally adjusted 382,000, the highest in two months, the Labor Department said on Thursday. The prior week’s figure was revised up to show 2,000 more applications than previously reported.
We all expect this right?
Is this the new normal?
Spanish trade unions are holding a general strike across the country today to protest new labor reforms, and by all accounts it has been a largely peaceful protest.
While for the most part conditions on the ground are relatively normal, photos from Madrid, Barcelona, and Pamplona indicated that some young protestors are escalating the angst, painting symbols supporting anarchy on walls, and causing small bouts of destruction.
Such events are reminiscent of similar protests in Syntagma Square, Greece, where groups of youthful protestors turned riotous despite generally calm strikes.
Two major points give us particular trepidation: the fact that these and similar protests closely resemble early protests in Greece a few years ago—when almost no one realistically considered the possibility of a Greek debt restructuring—and the sheer scale of Spanish youth unemployment.
As in Greece, young people have been seen as responsible for escalating peaceful political protests to violent riots. Spain’s unemployment data suggest that protests there could eventually be much larger—nearly half of young people are already unemployed and they face a tough future and a shrinking social safety net amid economic contraction and austerity measures.
via Business Insider.
For sixty years liberals and academics have been telling us to be more like Europe. This has been a mistake.
The only way for our youth (especially minority youth) is to improve our schools, reduce government waste, and grow the private sector so our newly educated children can get jobs. But our schools are current not providing the education needed in order to succeed. That needs to change.
In the meantime… we need the unions, religion, politicians, and community organizers to begin an honest dialog — toning down the language (e.g. denouncing the #KillZimmerman hashtag) and finding productive ways to work together instead of just yelling at each other.