Fotosdepatrisiamaterola

China's Top Priority: Curbing Inflation


Beijing) - Reining in soaring prices has Become the No. 1 priority of the Chinese government for 2011 as inflation continues to erode the savings of low-income families and inflate asset bubbles.

In the December 10 to 12 annual economic work meeting chaired by Chinese President Hu Jintao, the government made it clear that stabilizing prices without jeopardizing growth is at the top of the agenda for next year.

Lower-income households, which make up an overwhelming majority of the population, bear the brunt of inflation because they spend much of their income on daily necessities and do not meet the threshold to invest in property markets or buy gold to cushion against inflation. The issue of inflation has generated increasing public scrutiny.

The consumer inflation index rose 5.1 percent in November, up from 4.4 percent in October and the highest in 28 months. In the January-November period, inflation already reached 3.2 percent, above the government's annual inflation target of 3 percent.

The target of breakneck economic expansion, exemplified by double-digit gross domestic product (GDP) growth rates, has been scrapped. In 2010, the government has been striving for 8 percent annual growth while putting more emphasis on economic restructuring. To strike a balance between stable economic growth, which guarantees the creation of new jobs, and mild inflation, which does not harm livelihoods of ordinary people, has been a sound choice for the government. It is a balancing act which requires art.

Inflation was not a concern until September as most economists had expected inflation to peak in the middle of 2010 and go downhill in the rest of the year. China's loose monetary policy has been widely blamed as the major culprit for higher-than-expected inflation rates. In 2009, M2, the broad measure of money supply, grew 27.7 percent while GDP expanded by 8.7 percent. In 2010, the government set the target of money supply growth at 17 percent. China's excess liquidity has fueled asset bubbles.

Negative deposit interest rates have also caused savers to relocate bank deposits to stock markets and housing markets. Even after the central bank raised the interest rate by 0.25 percentage point to 2.5 percent in late October, actual deposit rates were still negative as inflation has continued to climb since July. Housing prices have kept going up nationwide despite two rounds of stringent tightening measures, adopted in mid-April and late September respectively, including a ban on the purchase of third apartments. The U.S. Federal Reserve's quantitative easing measures also drove up the prices of commodities, of which China is a major importer.

The Politburo of the ruling Communist Party on December 3 decided to switch from a "moderately loose" monetary policy adopted in the past two years to a "prudent" stance, in place between 1997 and 2008. Money supply is certain to be tighter next year than in 2010. However, the extent to which the tightening will be applied is still unknown. Caixin learned that the annual new lending target is likely to be set at 7 trillion yuan, compared with 7.5 trillion yuan in 2010, 9.6 trillion yuan in 2009 and 4.9 trillion yuan in 2008.

After the onset of the global financial crisis, China unveiled a stimulus package in November 2008 and a lending spree by banks came as well. Keeping inflation at bay and tamping down assets bubbles haves now become an increasingly urgent task for the government. Economists have offered much advice, ranging from interest rate hikes, draining liquidity by raising reserve requirements to allowing the yuan to appreciate at a faster pace in 2011.
www.caing.com

Resume Clothes Store Salesperson

DOES NOT BUY CHINA TO ARGENTINA, bought it from BRAZIL


www.terra.com.ar
China ya adquiere más aceite de soja en Brasil que en la Argentina y no realiza compras aquí since October, according to a report of the Argentina Association of Regional Consortiums for Agricultural Experimentation (AACREA)

The paper points out that between April 2010 and January, 65% of purchases were made in Brazil, 29% in the together and only 6% in Argentina.

Diego Pasi Economist reminded Noticias Argentinas that the three countries are major producers of soybean oil.

"From April 2010 to January 2011 82,540 tonnes were exported from Brazil were 915,300 tons and from the United States, 406,050 tons," he said.

The specialist said that "this is a very low volume compared to other years."

Meanwhile, Argentina remains with India as a major buyer, followed by Egypt, Venezuela and Dominican Republic.

"What Argentina stop exporting to China, this country will buy it to Brazil, it is because it is a business location with fewer players and markets," said Pasi. Matthias

Amorosi, project engineer AACREA Business Technology, looked at NA that "part of soybean oil that may remain as surplus can be used to produce biodiesel." Argentina

The House Renewable Energy (CADER) estimated that the installed capacity of producing biodiesel in Argentina could increase to 600 thousand tons during the during 2011.

the main ingredient for biodiesel is soybean oil.

Meanwhile, Alberto Rodriguez, executive director of the Chamber of Oil Industry of Argentina (Ciara) considers that the ban continues because "the problem lies in the trade relations between China and Argentina."

Rodriguez claims that recent purchases of soybean oil that China was held in October and then made the shipments.

A year ago, China had imposed a ban on the purchase of Argentina soybean oil in retaliation for anti-dumping measures on Chinese imports that were damaging to Argentina.

Months later announced it would lift the restrictions, but does not seem to happen today.

According to figures from the National Health Service and Food Quality (SENASA), Argentina in 2010, placed there 208,793 tons of soybean oil by $ 190 million, representing a fall in volume of 89% and 86 percent in value sales for 2009.

Wii Power Adapter Australia

VERY IMPORTANT: The Yuan moves to replace the dollar


URGENTE24.COM

The international transactions in China's currency last year amounted to U.S. $ 58,700 million, exceeding the record 13 times in 2009. CIUDAD DE BUENOS AIRES
(Urgente24). The yuan-border trade payments between Chinese and foreign companies experienced a rapid rise in 2010, revealed yesterday (1 / 04) the State Administration of Foreign Exchange (SAFE) of China.

According to the regulator, the international transactions in the currency of the country last year amounted to U.S. $ 58,700 million, exceeding the record 13 times in 2009.

The fact that more and more companies choose to pay and get paid in yuan or renminbi is due to China's ongoing efforts to further internationalize its currency, said the EDA.

In its report of international payments, 2010, the institution points out that in June Last year, the Government decided to expand the evidence-border commercial payments in renminbi of 4 local cities of Shanghai and Guangdong to a total of 20 provincial regions. Outside

country, China approved the payments in renminbi business with all countries and regions, instead of only the regions of Hong Kong and Macao and ASEAN nations, which until then had made transactions yuan experimentally.

The Association of Southeast Asian Nations - ASEAN (English: Association of Southeast Asian Nations - ASEAN) is a regional organization of Southeast Asian states created on August 8, 1967. Its main objectives are to accelerate economic growth and promote regional peace and stability. ASEAN has established a joint forum with Japan, and maintains a cooperative agreement with the European Union (EU). Its permanent secretariat is in Jakarta.

The shape Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Burma and Cambodia.

The extended pilot scheme also allowed 67,724 Chinese companies pay export-oriented commercial transactions in renminbi, far exceeding the 365 companies that had the opportunity to operate in this manner in 2009.

border trade payments in RMB mainland China with Asian countries and regions amounted to U.S. $ 53,400 million last year, equivalent to 91% of the total amount of the country in that year.

The yuan as a reference currency

worth remembering that as he wanted France won the support of G-20, so that the yuan is new currency. Thus, the Chinese yuan will have a special place in the monetary system and between the reference currency basket of currencies comprising the International Monetary Fund (IMF) and serves to calculate the SDR.

From this, the yuan will have much more attention from the markets, more than to be dispensed and China means reflects the importance it has today in the global economy. While

as made clear, this new member in the reference basket of currencies does not indicate that the dollar lost ground to its replacement as a reference point in the global economy along with oil something that will continue to reign for several more decades.

So the G-20, recognizes the yuan giving way to integrate the basket of currencies of Special Drawing Rights (SDRs), and adding to the dollar, the euro, sterling and yen. This will establish a timetable to include the yuan, it will not be immediate.

worth remembering that the yuan is the currency of the People's Republic of China. The meaning of his name is "people's currency", its issuance is in charge of the Chinese People's Bank.

For fractionation, the yuan (¥) is split in the form of ten jiao or mao "tickets" and in turn each jiao is divided into ten fen "cents." In order to prevent the yuan fluctuate depending on the financial market, so that the yuan is tied to a basket of international currencies.

addition, the renminbi currency from the people "is the official name of the currency in China. But in markets and countries known as the yuan. Because base currency, the value "1" is called the yuan, not renminbi.

China has been gaining the respect of markets, as has been escalating in different areas. For USA, China already is important considering that the Chinese government keeps down the value of the renminbi against the U.S. dollar as a strategy for their exports.

But one factor that the U.S. should not forget is that most U.S. treasury bonds held by the Chinese, so that if a rise in the renminbi would lead to result in the Chinese capital repatriation shaking the financial system in USA.