Why China's Stimulus Plan Will Change the World

(Financial decoupling, mentioned in the article, will go hand in hand-in-hand with renewed nationalist sentiment worldwide, a major reason the last round of world tade talks in Doha collpased. If China does not implode from internal problems will the US become its vassal state?)

http://www.fool.com/investing/international/2009/02/13/why-c...

By Tim Hanson
February 13, 2009

Brazil's President Lula told his country in September, "People ask me about the [financial] crisis, and I answer, go ask Bush. It is his crisis, not mine."

Fifty days later, British Treasury Secretary Stephen Timms told a conference of G-20 nations gathered in Sao Paulo, Brazil: "We are in extraordinary times, the global economy is facing shocks which are wholly without precedent and we need a new approach. … It is a global crisis. It therefore requires an international response."

In other words, what goes around, comes around. Global schadenfreude toward a stupid and greedy United States and its subprime mortgage meltdown has rapidly become global concern about how to rescue the world from an all-encompassing financial disaster.

Here's just a smattering of companies large and small that recently announced lowered outlooks: Hain Celestial (Nasdaq: HAIN), Qualcomm (Nasdaq: QCOM), Kraft (NYSE: KFT), Sara Lee (NYSE: SLE), Hologic (Nasdaq: HOLX), and Diageo (NYSE: DEO). (Yes, in these tough times, even the outlook for alcohol is grim.)

And if that were not enough, the International Monetary Fund (IMF) recently lowered its outlook for the entire global economy.

One country's plan to step up
Against that backdrop, China announced a four-trillion-yuan ($586 billion) stimulus package for its domestic economy at the end of 2008. It plans to fund extensive infrastructure construction, aid poor farmers, and cut export taxes.

http://www.fool.com/investing/international/2009/02/13/why-c...

This article was originally published on Nov. 12, 2008.