Perigo, perigo

In an important move alongside the rate cut, the Chinese central bank said it would allow banks to set deposit rates 10 percent above the benchmark level and to set lending rates 20 per cent below the benchmark.

This is a step towards interest rate liberalisation – that is, letting banks decide for themselves, based on market conditions, the level at which they set rates. Analysts believe this is crucial to putting the economy on a more stable footing by ensuring that households earn a fair return on their bank savings, thus encouraging more income to be used for consumption.

What's it Mean?

The simple explanation is China is slowing far more than the soft-landing crowd expects.

China wants to stimulate growth but it has already exhausted every economically viable infrastructure project. All that is left is malinvestment opportunities. Moreover, new projects will add to delays in much-needed rebalancing efforts both within China and externally.

Read more: http://globaleconomicanalysis.blogspot.com/2012/06/surprise-rate-cut-in-china-whats-it.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29&utm_content=Google+Reader#ixzz1xABT839Q

Coitada da Vale. Vai ser como eu disse mesmo, tchibum.

Coitado do Brasil que vende suas riquezas para os chineses a preço de banana e nao dá nada para o povo que ignora a manobra de lesa pátria.

Quero ver com é que vão explicar isso para as futuras gerações e, principalmente a geração que vem vindo ai atrás para tomar conta do galinheiro.