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Look East and pray China pulls through

Will US President Barack Obama’s massive economic rescue plan lift the world out of the slump? While the UK slides into the unknown with a programme of quantitative easing, the smart eyes are not looking to the West but the East.

China, the world’s second largest economy, is growing in importance by the day. Already the communists have begun helping the world out by buying US government securities which in turn have financed the US budget deficit.

Now China has embarked on an economic stimulus package that is reported to be tens of times more powerful than our own VAT cut and bigger still than what Obama is doing.

The Chinese are desperate for their rate of economic growth not to fall below 8% and trust me, you don’t want them to fail. If you think trading conditions are tough now, if China falls by the wayside you might as well get your coat.

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Marketwatch 16/03/2009

Swaps all fell last week, whereas in the previous few weeks we have seen some rise and some fall.
Three-month LIBOR is now 1.91%.
1-year money is down 0.07% at 1.78%
2-year money is down 0.04% at 2.2%
3-year money is down 0.08% at 2.46%
5-year money is down 0.12% at 2.93%

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