China: Stimulus Working

[Reuters Video] - China's central bank says the $580 billion stimulus measures are having a better-than-expected impact on the economy, with more action likely.

Does anyone really care what the IMF thinks?

Apr 22 (Retuers) - For the first time since the end of World War II, the International Monetary Fund is projecting that the world economy has fallen into a severe recession.

IMF statistics are widely used when proving a point in journalism, academic research or any other type of report. There are a handful of sources to turn when you need a legitimate source and the IMF's wonderful website is one of them.

It's full of statistics, economic research, news and pages dedicated to just explaining to you what the heck the IMF does... sounds like a exhilarating experience no?

There is already a raging debate among academics, economists and politicians if the good produced by the IMF outweighs the bad.

You don't see IMF economists, moving markets with their speeches on major news networks.

This is because they don't and they can't. When it comes down to it the IMF has true little power to influence momentum in markets. Financial markets don't care about what the chief economist at the IMF thinks or says because anyone in the business probably has a research department in their company that has already come to the same conclusion. Heck, I could have Googled what these IMF guys said in this Reuters video.

China plans new stimulus package - Reuters

Apr. 13 (Reuters) - China is planning a new stimulus package to boost consumption.

Japanese launch job hunt rallies - Reuters

Feb 5 - Cheerleaders are being used to drum up enthusiasm among students poised to enter the jobs market in Tokyo.

Such pep rallies are more traditionally held to drum up enthusiasm and support for political causes and sports teams but several colleges and vocational schools in Tokyo are using them to build up job hunting momentum among their students.

Paul Chapman reports. -- Reuters

Emerging Markets' Presence Grows at Davos Economic Forum -- Bloomberg

Jan. 29 (Bloomberg) -- Emerging markets are gaining attention at the
World Economic Forum in Davos, Switzerland, as developed nations flounder and seek a solution to the global financial crisis.

The financial meltdown has undermined western-style capitalism as an economic model, leading some to question whether emerging markets are willing to listen follow western advice for their economic development as they did in the 1990s. (Source: Bloomberg)

For more Bloombergcoverage from Davos see http://www.bloomberg.com

你好 读者（Ni hao duzhe）-- Hello readers

I must apologize to all those who once counted on this blog for perspectives, news, analysis and all the rest that used to be provided on a daily basis.  Sadly Internet restrictions and lack of access in the far east have made it difficult, sometimes impossible to access blogger. 

I write to you from the beautiful, bustling, urbanized yet serene city of Suzhou, China.  

(Click here to check out some nice pics from the cities official website)

I had planned to keep this website going strong during my year long stay in China.  Sadly, it is incredibly difficult to update from here.  I will continue to try, and I have a new internet connection arriving in a few days, which I hope will allow me more privileges as I am being forced to provide everything down to my blood type in order to obtain (hehe).

While my connection lasts i'll get what word I can out.  Everyday as I check in with the world via my blackberry I see stock markets plummeting, governments hosting meeting to address the crises, blame being dealt left and right, and my portfolio sadly decrease in value more and more.

While on this side of the Pacific, many express concern and legitimate worry that something horrible is on the verge of beginning (a global recession).  Meanwhile, from a rational point of view, I don't exactly see the world crumbling into pieces.  Buildings are still going up, the malls in China are full, people are swiping their credit cards, mortgages are being taken to buy apartments and houses, and people have generally remained hopeful of a brighter future.

Whether it will still be like this 6 months from now when the economic problems of the West more fully manifest, I can not tell.  What I can say for certain is it is not in China or any other emerging market of Asia's interest to see the United States and Europe come tumbling down. There is still tremendous room for China to grow, and grow it will.  Factories which produce goods for export to the West will shut, but the economy will re-adjust with a heavier focus on the domestic front.  

Just as the United States has centers of economic activity - New York, California, Texas, etc, so does China.  Beijing, Shanghai, the Southern Coast, the rebuilding of Sichuan will dominate China's economy on the surface in the months to come.  

Yes, hardships will probably become more obvious in the poorer regions of the country in the months to come, but they will not dictate the course of China's economy.  I have come to learn, China can not grow to infinity on its own, if it could, my Chinese stocks would not be hurting so greatly right now.  China can however soften the impact it will feel from the global financial meltdown underway right now.  

After researching, analyzing and attempting to no avail to decipher the commodity trade between China and South America, one thing I can say for certain is that the recent plunge in commodity prices will help China continue to prosper, not hurt it.  Record high prices of everything from copper, iron ore to energy had become a genuine problem for many industries here in Asia.  

In the coming months it will be interesting to see how and if a new balance can be established, and where prices will settle.  I'll leave my personal observations here, and I hope to be able to soon be in a position where I can begin bringing news, analysis and my personal observations to all readers of this site.