The International Monetary Fund cut its global growth outlook last week as capital outflows further weaken emerging markets . A big risk for China now is that the government has to scale back its domestic pro-growth policies while external demand fails to grow to make up the gap, said Xu Gao, chief economist with Everbright Securities Co. in Beijing, who previously worked at the World Bank . If that happens, it will result in very weak growth starting next year. Yuan Gains The yuan strengthened 0.2 percent against the dollar after the central bank raised the currencys reference rate to a record, while Chinas benchmark money-market rate declined for a third day. The Shanghai Composite Index of stocks rose 0.4 percent. The increase in Chinas consumer-price index compares with the 2.8 percent median estimate of 44 economists in a Bloomberg survey , after a 2.6 percent gain in August. The decline in the producer-price index narrowed to 1.3 percent from 1.6 percent the previous month. The government is targeting 3.5 percent consumer inflation for the year. As the inflationary pressure has picked up, the central bank is unlikely to change the tightening bias in monetary policy for the rest of the year, Liu Li-Gang, chief Greater China economist at Australia & New Zealand Banking Group Ltd. in Hong Kong , said in a note today. New yuan loans in September were 787 billion yuan ($129 billion), the Peoples Bank of China said, compared with the 675 billion yuan median analyst estimate.
You dont need a degree in economics to understand who profits from these rules: the American farmers, food processors, maritime unions, ship-owning companies and ports that enjoy a guaranteed flow of government business. USA Maritime , a lobbying coalition, estimated this spring that international food aid accounts for 44,000 jobs in 28 states . So it was that when pirates seized the 500-foot Maersk Alabama in April 2009, the ship flying the Stars and Stripes, with Capt. Richard Phillips in charge of an American crew was carrying, according to a spokesman, 8,000 metric tons of American-made vegetable oil, bulgur wheat, corn soya blend and dehydrated vegetables to the United Nations World Food Programme in Mombasa, Kenya. Of course, the domestic rewards of international altruism have been invoked in favor of food aid since President Dwight Eisenhower said that global distribution of Americas bounty would lay the basis for a permanent expansion of our exports of agricultural products with lasting benefits to ourselves and peoples of other lands. The problem is that special-interest carve-outs result in programs that feed fewer people at greater cost than might otherwise be the case. The set-aside for U.S.-flagged vessels jacks up transportation costs. If there were no buy-American rule for the food commodities, the United States could purchase from the cheapest, most convenient source possibly in Africa. Instead of dumping our bumper crops on their markets, Washington could provide an incentive for African farmers to invest and produce, improving self-sufficiency on that continent. Under current law, at least 15 percent of U.S. food aid (and, in practice, usually more) must be monetized. This means that once a U.S.-flagged vessel gets the commodities to Africa, they are resold on local markets by nongovernmental organizations, which use the cash to fund development projects. Monetization makes about as much sense as mailing your temporarily broke pal a large parcel of food with instructions to sell it and spend the proceeds on job training. In 2011, the Government Accountability Office found that, over a three-year period, the program resulted in $219 million being spent on commodities and shipping that otherwise would have been available for development projects.
“I saw people drag out eight to ten grocery carts,” Springhill Police Chief Will Lynd told local CBS affiliate KSLA . “It was definitely worse than Black Friday. It was worse than anything we had ever seen in this town.” The glitch, caused by a power outage during a routine maintenance test at Xerox , took many long hours to correct and affected millions of households across 17 states. Around 7 PM, the Walmart stores in Springhill and Mansfield first noted that EBT cards were not displaying limits and called corporate for guidance. A spokesman for the company acknowledged that the stores got the green light to allow customers to use their EBT cards despite the glitch a decision which led many to load up on hundreds of dollars worth of food items, clearing out entire shelves by the time limits were restored two hours later. Lynd said that at no point were people unruly, and officers were merely brought in to assist with crowd control. Manfield’s police chief Gary Hobbs also reported calm among shoppers, save for a few instances of “pushing and shoving.” However, a store employee told KSLA they were forced to stop selling food by 9 PM because there was nothing left to sell. In Springhill, many overflowing shopping carts were left in the aisles after limits were restored, and employees spent nearly an entire day putting items back. According to ABC News , Walmart will be held responsible for any amount spent over the limit by EBT card holders. A Louisiana Department of Children and Family Services spokesman said the company chose not to adhere to the emergency policy which limits all sales during a system outage to no more than $50.