Tuesday, February 3, 2009

China: money fleeing,economy declines

Beware what you wish for Schumer et al. What happens when this situation changes?

China's money in full flight to foreign refuges: The flow of capital into China has reversed. Money is going out as the nation's growth rate plummets, with experts estimating that as much as $240 billion left during last year's fourth quarter. Chinese investors are sending their money out of the country; the foreign affiliates of Chinese companies are parking their money elsewhere; and foreign investors are increasingly pulling their money out.

A senior Chinese government official said 20 million migrant workers have lost their jobs because of the economic crisis, a figure that is two to three times higher than what the government forecast. Chinese Premier Wen Jiabao assured an audience in London that the government will "take forceful steps" to prevent the nation's growth rate from falling significantly below 8%.

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