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China Premier Li: "No Major Stimulus"

Tyler Durden's picture




 

Last night's devastating trade data from China had the bad-news-is-good-news crowd chomping at the bit over the next massive stimulus that 'surely China will unleash...because they've got so much in reserves'. However, as we have explained previously, Chinese premier Li Keqiang destroyed those expectations last night when he ruled out major stimulus to fight short-term dips in growth. Unlike his 'desperate for a short-term fix' colleagues in the west, Li stated more thoughtfully (and perhaps more knowingly given his country's pending credit bubble crash), "we will instead focus more on medium- to long-term healthy development."

 

As Reuters reports, even as big falls in imports and exports data reinforced forecasts that the world's second-largest economy has slowed notably at the start of 2014, Chinese Premier Li Keqiang ruled out major stimulus to fight short-term dips in growth.

Li stressed on Thursday that job creation was the government' policy priority, telling an investment forum on the southern island of Hainan that it did not matter if growth came in a little below the official target of 7.5 percent.

 

"We will not take, in response to momentary fluctuations in economic growth, short-term and forceful stimulus measures," Li said in a speech.

 

"We will instead focus more on medium- to long-term healthy development."

 

His comments are among the clearest yet on the government's plans for the economy, which has rattled global investors this year with a surprisingly lackluster performance.

Of course hope spring eternal among the stimulate-or-die, band-aids forever strategist crowd...

The almost unabated run of disappointing data this year has fuelled investor speculation the government would loosen fiscal or monetary policy more dramatically to shore up activity.

 

This kind of collapse in data would be a huge buying signal for Western stocks...

 

But authorities so far have resisted broad stimulus measures. On Wednesday, the top economic planning agency said the government had less room to underpin growth because it did not want to inflate local debt risks. And now Premier Li's more blunt words should make it clear that global investors riding the wave of moar free money to China's shores should look elsewhere.

 

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Thu, 04/10/2014 - 14:26 | 4644229 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

Hope and Change!

Thu, 04/10/2014 - 14:46 | 4644284 Battleaxe
Battleaxe's picture

Any General Stimulus? How about Colonel Stimulus?

 

Just Private Stimulus?

Thu, 04/10/2014 - 14:48 | 4644314 NoDebt
NoDebt's picture

Sergeant Stimulus reporting for duty, sir!  This is my nail gun.  There are many like it, but this one is mine.

Thu, 04/10/2014 - 15:37 | 4644560 graneros
graneros's picture

Oh man I had already logged out.  Had to log back in for this "Full Metal Jacket" green arrow. Well done Sergeant. Carry on.

Thu, 04/10/2014 - 16:32 | 4644781 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Hope and Change!

Dope and Deranged!

Thu, 04/10/2014 - 16:42 | 4644817 Wahooo
Wahooo's picture

 

Thu, 04/10/2014 - 14:27 | 4644232 lolmao500
lolmao500's picture

Yeah I'm gonna laugh when millions of chinese lose their jobs and start revolting.

Fri, 04/11/2014 - 07:12 | 4646680 N2OJoe
N2OJoe's picture

If being kidnapped and murdered by their gov didn't do it, i doubt a simple job loss for a couple months will. Especially since they are doing it the right way and taking the short term pain now instead of dragging it out as long as possible like our "Dear Leader".

Thu, 04/10/2014 - 14:29 | 4644234 Belrev
Belrev's picture

http://www.zerohedge.com/news/2014-04-10/satellite-photos-released-revea...

 

Russian troop build up fotos take in August 2013 Russian military responds to NATO "proof" reports - http://lenta.ru/news/2014/04/10/photo/

Thu, 04/10/2014 - 14:54 | 4644343 centerline
centerline's picture

I am again soooooo shocked.  lol.

Thu, 04/10/2014 - 14:28 | 4644236 new game
new game's picture

no moar - the game changer, safest bonds baby bonds-train on tracks but slowwwwing, equities tanking.

Thu, 04/10/2014 - 14:28 | 4644238 101 years and c...
101 years and counting's picture

whowouldathunkit?  china is more capitalist now than the US is.

Thu, 04/10/2014 - 14:29 | 4644244 fonzannoon
fonzannoon's picture

Has anyone seen the Bernak. He is still in charge right? I miss the Bernak. I demand the Bernak! Turn those machines back on Bernak!!!

Beeeeerrrrrnnnaaaaakkkkk!!!!!!!

Thu, 04/10/2014 - 14:57 | 4644355 NoDebt
NoDebt's picture

You're joking around, but there will come a day we look back wistfully at the Bernanke era.  

He came in around the old highs, battled valiantly but in vain as Greenspan's legacy knocked the market down by HALF.  It looked grim.  But that crazy sonofabitch just yelled "damn the middle class, full speed ahead!"  All the levers on the sides of the government printers were pushed up into the "run until failure" position.  Day and night they printed, without rest.  When one printer failed, 3 others replaced it.  

And he got is all back.  That crazy, beutiful bastard got it all back.  AND MORE.

Hold on a minute.... I'm getting a little choked up here.....

Thu, 04/10/2014 - 15:00 | 4644364 fonzannoon
fonzannoon's picture

I'm not joking I want him back. Like right now.

Thu, 04/10/2014 - 15:08 | 4644396 NoDebt
NoDebt's picture

Truth be told, so do I.  Janet is NOT looking up to the task.  If The Bernank said "I'll print until the cows come home", you would believe it.  Janet could say the same thing and I would have serious doubts.

Thu, 04/10/2014 - 14:30 | 4644245 Bill of Rights
Bill of Rights's picture
Zimbabwe: Zim's U.S Coins Deal Collapses

http://allafrica.com/stories/201404101330.html

Thu, 04/10/2014 - 14:30 | 4644250 Itchy and Scratchy
Itchy and Scratchy's picture

Lowerin' the Debt Ceilin'!

Thu, 04/10/2014 - 14:32 | 4644258 Winston Churchill
Winston Churchill's picture

What do they know we don't  ?

We are seeing a multi pronged attack on the petro dollar.Which western banks are lying

about their exposure to the Chinese shadow banking system ?

There is a big nigger in the woodpile here, or should I say black swan.

Thu, 04/10/2014 - 15:35 | 4644559 WillyGroper
WillyGroper's picture

LOL WC. I haven' heard that since my long departed mother used to say it.

Thu, 04/10/2014 - 14:34 | 4644266 A_Nejad
A_Nejad's picture

I think I'll have to sleep here at the office tonight.  The way these news coming in, I have to be here at 5 a.m. tomorrow anyways.. 

Thu, 04/10/2014 - 14:37 | 4644274 venturen
venturen's picture

sad we have to look to russia and china for sanity.

Thu, 04/10/2014 - 14:42 | 4644288 new game
new game's picture

WC - yes, "fed" up with being hostage and gamed when the east(russia), can change the rules.

economic warfare with resources, production block- black swan may be hands off the market and let usa fuck itself(dollar demise).

many signs afloat(yuan):)

Thu, 04/10/2014 - 14:41 | 4644293 riot-police
riot-police's picture

(Reuters) - Chinese importers have defaulted on at least 500,000 tons of U.S. and Brazilian soybean cargoes worth around $300 million, the biggest in a decade, as buyers struggle to get credit amid losses in processing beans.

http://www.reuters.com/article/2014/04/10/us-china-soybeans-idUSBREA3914M20140410

Thu, 04/10/2014 - 14:48 | 4644313 NOTaREALmerican
NOTaREALmerican's picture

Letters-of-credit,  letters-of-credit, ....   yeah,   i remember those names from  2008/2009...

Thu, 04/10/2014 - 14:53 | 4644338 Winston Churchill
Winston Churchill's picture

Those were promissory notes.Not the same at all.

Thu, 04/10/2014 - 14:44 | 4644303 disabledvet
disabledvet's picture

500,000 tons of soybeans sitting off China's ports as letters of credit refuse to be honored.

http://www.reuters.com/article/2014/04/10/us-china-soybeans-idUSBREA3914...
I don't think any "hail mary" natural gas deals are going to change this problem.

Thu, 04/10/2014 - 14:51 | 4644331 Winston Churchill
Winston Churchill's picture

Bank LoC's cannot be defaulted upon unless by force majeure.

They are allocated funds generally.

Not sure this is not the opening salvo in a disinfo war.

Thu, 04/10/2014 - 14:52 | 4644334 Skin666
Skin666's picture

This just gets better!

 

The russkies and the chinks have decided to pull the plug on the petrodollar. Let it crash and start again, but with the gold.

 

Check Mate

Thu, 04/10/2014 - 14:54 | 4644342 NOTaREALmerican
NOTaREALmerican's picture

Re:  but with the gold.

One would think if "they" could crash the dollar they'd have be smart-n-savvy enough to replace it with their own currency.

The reserve currency is a nice thing to have. 

Thu, 04/10/2014 - 14:53 | 4644336 Soul Glow
Soul Glow's picture

They always say no stimulus right before they stimulate, but we are approaching death of finance and they can shock the corpse as much as they want, it won't bring it back to life.

Thu, 04/10/2014 - 14:53 | 4644339 Obama_4_Dictator
Obama_4_Dictator's picture

Oh ohhhh...spagehhhtiiii oh.

Thu, 04/10/2014 - 14:55 | 4644346 Philalethian
Philalethian's picture

Hummmm...there is no greater reporting in the world than that which is found on ZH. We are eternally grateful to not only be a small part of the entire world forum, but to be enlightened by the great Light that shines here. Oh yeah.

What we have not seen here all day is any reporting about what is happening at home.

Three major stories, one that is is happening live on the AJ channel now, and one that no words have been spoken to all all yet here.

We have seen live the vote to hold lois lerner in contempt of congress. One about holder ranting at the congress critters.

We are watching the rancher live in Nevada right this minute live real time on TV speak his truth. There are state representative headed there later today. That will be interesting to see live on the real news reporting station.

THIS IS NEWS!

http://www.infowars.com/watch-alex-jones-show

 

Thu, 04/10/2014 - 15:03 | 4644378 centerline
centerline's picture

I have no doubt there will be some sort of polarizing moment where someone screws up royaly and the "herd" will suddenly turn.  Not likely to be this Nevada thing... but you can see how each time they get closer and closer to the edge.

Thu, 04/10/2014 - 14:57 | 4644351 new game
new game's picture

hey what country can say we are slowing to 6 percent growth? even at 4-5 percent they got the world as their playpen to export to. just have to fill some skyscrapers and cities first:) maybe a clearing price that allows average china man to buy/start his/her first home/business and let the speculators eat shit. time will tell, but some kind of an epic wealth destruction/transfer under way imo...

Thu, 04/10/2014 - 15:15 | 4644445 starman
starman's picture

"We will instead focus more on medium- to long-term healthy development."

 

(and the devaluation of our fab currency the YUAN)

 

Thu, 04/10/2014 - 16:31 | 4644772 Offthebeach
Offthebeach's picture

"...... inese premier Li Keqiang destroyed those expectations last night when he ruled out major stimulus to fight short...."

Translation.

Stimulas for Too Big To Fail Party Members, yes. Everyone else, fuhgedabotit.

Do NOT follow this link or you will be banned from the site!