Is China's Economy Sagging: China Central Bank to Insert $80bn

China’s sagging economy has heard rumors of a stimulus plan by the Chinese Central Bank to inject approximately $80bn into its banking system. In response to massive economic decline in recent months largely from speculative over development that began in 2009, the central bank of China is making moves to prevent economic meltdown. According to traders and analysts, China’s central bank is planning to offer five of its biggest banks the funds via a three month facility. Chinese authorities have refused to confirm the release of the $80bn facility to its largest banks so as to not alarm the market.

If the Chinese central bank is unable to control a total meltdown of its economy, what will be the effects on the global economy as we near the end of 2014? With China as the second largest economy in the world, perhaps the news of such a large stimulus should cause us to stand up and take notice? Please leave your comments on this topic below, would love to hear from you!

(Source: FT.com: http://www.ft.com/intl/cms/s/0/105c47ee-3e11-11e4-b175-00144feabdc0.html?siteedition=intl#axzz3DaU4uiS0 )

Posted by Corey Curwick Dutton