The Likonomics
--The Likonomics--
“Likonomics ”, the term to describe Chinese Premier Li Keqiang`s economic policy. Was coined on June 27 by three economists at Barclays Capital. Like "Thatcherism", "Reaganomics", and more recently “Abenomics”, "Likonomics" has become the buzzword to describe the implications of China's new economic program. And what is “Likonomics ”? The Barclays Capital`s economists also give our a explain, “Likonomics ” was a series of measures adopted by the State Council. The measures were passed to ensure the sustainability of China`s economy. “which could be summarized as "Likonomics", consists of three key pillars: no stimulus, Deleveraging and structural reform." It is mean the China need to free the market, and stop the government control the market. And this new police is a long-term objectives, so the next three years the grew rate of Chinese quarter of Economic will be reduced at least 4%.
“Since assuming office in mid-March, Premier Li Keqiang has taken a different policy path. Its key economic policy framework, which could be summarized as "Likonomics", consists of three key pillars: no stimulus, deleveraging and structural reform.”(China Daily 07/05/2013 page9 by Huang Yiping). In the news, we know the three solutions, “no stimulus ”, “Deleveraging ” and “structural reform ”. The “stimulus ” mean the government in the short time,
following the liabilities or expand the money supply to stimulate the economy, but at the same time the inflation also coming, So the first way is to decrease the Chinese inflation. And the second solution is “Deleveraging ”, this solution`s meaning is “repay”, repay the money that borrow before the economic crisis, at the same time the most assets, such as stocks, bonds, real estate the prices of those assets will be decrease, and the country`s economy also will be reduced. The last solution is the “structural reform”, everyone know the government has no able to control the market, because the government cannot get all information for the government, but it just is the half reason for this solution, the other part is the “corruption” in the Chinese government system, the power official have able to control the economy. So the Premier Li Keqiang build the “free trade zone” in Shanghai, in this area no one can control the economy, that mean every thing happen in this area are all form the market`s self adjusting.
In fact the words “no stimulus ”, “Deleveraging ” and “structural reform ” are professional, so I use my own word to explain the “Likonomics ”. I have four steps. First step, only “fight” the inflation and do not care the Chinese Economy grow rate, right now in China the RIBOR between banks is from 2% increase to 30%, it is effective to stop the banks`s venture investment, because
when the RIBOR incre ase the bank have to keep the “working capital” in their own hand, they have no enough able to pay the extremely high interest rate, so that the total money in the market going to decrease. But at the same time the China “Total Social Financing ” it reduced 43%. Secondly step, is decrease the TAX, as same as the picture show as, right now the Chinese tas price is stand on the point A, and if the government reduced the tax price the total tax revenue will
be
increase. Thirdly step, is free the coal`s price, because in China the coal is the most important resource, people use the coal to generate electricity, warm and others, but on the coal have 88 kinds of tax, and the government disagree to trade the coal with other countries, so that if the government stop to control the coal`s price, the price will be decrease, then the burden of enterprises will accordingly drop. Fourth step, and also the last step is talk about
the government control. We all know, that if the government control the market the efficiency of market will goes down, because the government cannot get all the information in the market. So the “Free trade zone” was born in Shanghai, in this zone the government cannot control, and the other large enterprise also cannot intervene, it is a 100% free market. The Premier Li is use this way to break the bureaucracy in China.
Right now, the China is the fastest develop country in the world, and at the same time the stagflation also is coming. So the Premier Li use the extremely hard cost to stop the Chinese inflation increase. We don`t know what will be happen in the after ten years, even twenty years, the China, stand on the top of world, every action of China can have able to effect the international economic.
All the informations are from those website:
The Likonomics
5
The Likonomics
--The Likonomics--
“Likonomics ”, the term to describe Chinese Premier Li Keqiang`s economic policy. Was coined on June 27 by three economists at Barclays Capital. Like "Thatcherism", "Reaganomics", and more recently “Abenomics”, "Likonomics" has become the buzzword to describe the implications of China's new economic program. And what is “Likonomics ”? The Barclays Capital`s economists also give our a explain, “Likonomics ” was a series of measures adopted by the State Council. The measures were passed to ensure the sustainability of China`s economy. “which could be summarized as "Likonomics", consists of three key pillars: no stimulus, Deleveraging and structural reform." It is mean the China need to free the market, and stop the government control the market. And this new police is a long-term objectives, so the next three years the grew rate of Chinese quarter of Economic will be reduced at least 4%.
“Since assuming office in mid-March, Premier Li Keqiang has taken a different policy path. Its key economic policy framework, which could be summarized as "Likonomics", consists of three key pillars: no stimulus, deleveraging and structural reform.”(China Daily 07/05/2013 page9 by Huang Yiping). In the news, we know the three solutions, “no stimulus ”, “Deleveraging ” and “structural reform ”. The “stimulus ” mean the government in the short time,
following the liabilities or expand the money supply to stimulate the economy, but at the same time the inflation also coming, So the first way is to decrease the Chinese inflation. And the second solution is “Deleveraging ”, this solution`s meaning is “repay”, repay the money that borrow before the economic crisis, at the same time the most assets, such as stocks, bonds, real estate the prices of those assets will be decrease, and the country`s economy also will be reduced. The last solution is the “structural reform”, everyone know the government has no able to control the market, because the government cannot get all information for the government, but it just is the half reason for this solution, the other part is the “corruption” in the Chinese government system, the power official have able to control the economy. So the Premier Li Keqiang build the “free trade zone” in Shanghai, in this area no one can control the economy, that mean every thing happen in this area are all form the market`s self adjusting.
In fact the words “no stimulus ”, “Deleveraging ” and “structural reform ” are professional, so I use my own word to explain the “Likonomics ”. I have four steps. First step, only “fight” the inflation and do not care the Chinese Economy grow rate, right now in China the RIBOR between banks is from 2% increase to 30%, it is effective to stop the banks`s venture investment, because
when the RIBOR incre ase the bank have to keep the “working capital” in their own hand, they have no enough able to pay the extremely high interest rate, so that the total money in the market going to decrease. But at the same time the China “Total Social Financing ” it reduced 43%. Secondly step, is decrease the TAX, as same as the picture show as, right now the Chinese tas price is stand on the point A, and if the government reduced the tax price the total tax revenue will
be
increase. Thirdly step, is free the coal`s price, because in China the coal is the most important resource, people use the coal to generate electricity, warm and others, but on the coal have 88 kinds of tax, and the government disagree to trade the coal with other countries, so that if the government stop to control the coal`s price, the price will be decrease, then the burden of enterprises will accordingly drop. Fourth step, and also the last step is talk about
the government control. We all know, that if the government control the market the efficiency of market will goes down, because the government cannot get all the information in the market. So the “Free trade zone” was born in Shanghai, in this zone the government cannot control, and the other large enterprise also cannot intervene, it is a 100% free market. The Premier Li is use this way to break the bureaucracy in China.
Right now, the China is the fastest develop country in the world, and at the same time the stagflation also is coming. So the Premier Li use the extremely hard cost to stop the Chinese inflation increase. We don`t know what will be happen in the after ten years, even twenty years, the China, stand on the top of world, every action of China can have able to effect the international economic.
All the informations are from those website:
The Likonomics
5