“Wednesdays with Axel” ……China Steps on the Gas….Good Call Mr. Merk

As a fun way to review the Axel Merk Private Client Event over the next few weeks, we have nick named our discussion “Wednesday with Axel” and will use our mid-week post as format for the review of questions you/client’s submitted and a review of the important topics discussed.

So her we go:

Merkism: China is stronger than you think

During our Roundtable discussion and in answer to several of the terrific questions (click for the whole enchilada of questions) that were presented by you (great job again) Axel said very bluntly that China was much stronger than many thought and that due to their government’s “control of the situation“, they can apply incentives easily to their country to spark growth.

China Gets Jiggy and Steps on the Gas

Very recently, China officials announced that they are allowing much lower lending rates that will be more in line with each borrowers credit. Prior to this announcement there was a higher floor rate across all lenders. Here is a nice Bloomberg/Business week article that explains the details.

So What? This is a BIG DEAL!!!

With the largest population in the world, a soon to be dominant consumer, all countries across the world should desire a healthy China. Remember we are all in this together as capital formation and consumption will find it’s way to the most economical place.  Bottom Line: China is your friend and we all do better with a healthy huge neighbor!!

Hope you enjoyed this first, Wednesday with Axel…..with many more to come!

Have a Great Day!

John Kvale