Asia, Europe close ranks to ease financial crisis
http://www.guardian.co.uk/business/feedarticle/7925372
Summery:
This is news about how the Chinese government was trying to get any resources and means to help to ease its domestic financial crisis. The Chinese government already pledged about $4 trillion to help the banks and restart money markets in order to prevent deeper financing crisis in the future. The Prime Minister Hu, Jing Tao said:” We must use every means to prevent the financial crisis impacting growth of the real economy." He also said that countries need to strike a balance between innovation and regulation and between savings and consumption.
Connection:
Ruling a country’s finance is just like managing a big company. No one would know what would happen next. But still, some basic accounting rules and formulas are very important and necessary to use. The Balance Sheet format could be used by an organization as small as a company or as big as a country. Like the Prime Minister said, that the Chinese Government must strike a balance between innovation and regulation and between savings and consumption. He is right and that’s the way any managers or board of directors should rule the company, to make as many profits and use as less consumption as they could. Make the “asset” increase, the “liability” decrease in order to increase the “shareholder’s equity”. And in this case make the whole country’s equity increase.
Reflection:
Well, I believe that the Chinese economy will rise in a fast pace for the Prime Minister Hu used the right method the manage it. He is trying his best to save money for the country. He established money markets for security and also to make more profits in the future. He reduced the expenses and consumption of the country as much as possible. I think that China is in a huge financial crisis right now probably has the Olympic as part of its reason. China spent a lot of money and also manpower in building the “Bird Nest”. The biggest and the most comfort stadium in China and also the world. I hope that Prime Minister Hu would realize after this event that save more money for the country’s own use is much more important than have a huge and fantastic Olympic Opening Ceremony.
1 comment:
China is indeed trying to build up their economy but they are facing a tremendous financial crisis, due to the United States economy. The United States are the ones that impact the world the most because they are the brotherhood of the whole world. They should be helping out others instead of being in a financial crisis themselves. However, China is still a developing country and it takes an abundance of time and effort to pull them out of the pit. China has a good economy, compared to other developing countries, but it certainly cannot run on the same level as countries, such as Canada. China is comparable to the proverbal needle in the haystack. It is so small that you can't even find it or compare it with other high standard countries who are already developed.
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