Just looked at a yearly statement from one of my farm loans and was surprised pleasantly to see only 3 percent interest rate since april 22/09. She is a floating one. Thought I was at 4 actually. Thinking with the unemployment rates so high in USA Canada that the low interest should trend tend to stay low as we need jobs. Now I hear China thinking to raise rates in their country.
This from Bloomberg.
The central bank has kept its benchmark one-year lending rate at a five-year low of 5.31 percent after five reductions in the last four months of 2008, and in the first 11 months of 2009 allowed a record 9.21 trillion yuan ($1.4 trillion) of new bank loans.
Lets put this in perspective. 9.21 trillion yuan is 1.35 trillion US dollars as there is 6.82 yuan to the US dollar.
So the Chinese economy is so hot that they think to increase rates in their own country to slow their economy. Meanwhile the Chinese bank roll the US economy for about half that rate. Interesting. But the hardest thing I am finding to wrap my head around is the 1.35 trillion US new loans in China in just one year. Wow. And we think we are going to be OK with our commodities? I feel a blow to our whole north American EGO.
Now what happens for some unforeseen reason that interest rates rise to 25 percent just because the Chinese economy can handle it? Its like buy out North America time. Even our invincible Canadian banks would not even have a chance with all the fore closers and write downs. Time to eliminate debt.
This from Bloomberg.
The central bank has kept its benchmark one-year lending rate at a five-year low of 5.31 percent after five reductions in the last four months of 2008, and in the first 11 months of 2009 allowed a record 9.21 trillion yuan ($1.4 trillion) of new bank loans.
Lets put this in perspective. 9.21 trillion yuan is 1.35 trillion US dollars as there is 6.82 yuan to the US dollar.
So the Chinese economy is so hot that they think to increase rates in their own country to slow their economy. Meanwhile the Chinese bank roll the US economy for about half that rate. Interesting. But the hardest thing I am finding to wrap my head around is the 1.35 trillion US new loans in China in just one year. Wow. And we think we are going to be OK with our commodities? I feel a blow to our whole north American EGO.
Now what happens for some unforeseen reason that interest rates rise to 25 percent just because the Chinese economy can handle it? Its like buy out North America time. Even our invincible Canadian banks would not even have a chance with all the fore closers and write downs. Time to eliminate debt.
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