New York, NY (PRWEB) October 03, 2012
According to Michael Lombardi, lead contributor to Profit Confidential, the debt crisis in the eurozone has put the Chinese economy under scrutiny. The slowdown in the Chinese economy is widespread, and the government is taking action constantly to deal with it, states Lombardi. But despite all of its attempts to jumpstart its economy, China is now turning to the eurozone and offering to purchase eurozone bonds. With this move, the country hopes to spur its own economy in turn.
“China is a major player in the global economy; any slowdown in the global economy affects its prosperity,” Lombardi points out. “The eurozone was the biggest trading partner of China, but now with its outlook so bleak, trade between the eurozone and Chinese economy has fallen significantly.”
In the article “Will China Save the World Economy?,” Lombardi notes that China saw interest rate cuts in June and July and the Chinese government has been injecting cash into the Chinese economy to combat the forces affecting its growth. China has also lowered the reserve requirement by banks and freed about 1.2 trillion in yuan, he adds.
The Chinese government has recently shown some willingness to help out the countries in the eurozone, saying that it is willing to buy eurozone bonds if the countries are able to find a balance between fiscal austerity and economic stimulus, reports Lombardi.
“The reasons are simple,” states Lombardi. “In order for China to grow, it has to make sure that the eurozone gets out of the debt crisis. The eurozone getting out of the debt crisis would mean increases in demand and more trade between China and the eurozone.”
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.