Borrowers in China are charged only 5.35 percent for the a one year loan while depositors receive 2.50 percent interest on their one year deposits.
This amounts to a "spread" between what the bank charges borrowers and what it pays depositors of .0535/.0250 = 2.14.
In the U.S., banks pay depositors about 0.10 interest on comparable deposits, while charging 14 percent or more on credit card balances. This amounts to a spread of 0.14/0.001 = 140.
Since the group of people who have savings deposits are largely the same people who borrow money to make purchases, what the Chinese are doing is essentially to increase the money supply to consumers to increase their economy, that is, increase spending.
Therefore, China is taking appropriate action to spur their economy.
U.S. policy, as practiced by the Federal Reserve (a wholly owned subsidiary of wall Street), is to pay practically nothing to depositors for the banks' use of depositors' assets, while charging usurious rates to short term borrowers who use their credit cards and aren't able to pay off their balances within the grace period.
The end result is that the banks siphon spending money away from consumers who would have more money to spend on goods and services if they weren't paying so much on bank interest.
It gets worse. Austerity measures promoted by the banks and Wall Street further siphons money away from governments which could increase economic activity by spending money on infrastructure and education.
Allowing offshore tax havens and reducing taxes on the rich removes money from the middle and working classes since governments either have to reduce spending or borrow the money from the wealthy (those who have it to lend) to pay the wealthy for the funds that they would normally get merely by taxing the rich.
To summarize, China is taking appropriate action to help their economy, by providing low cost funding to their people to increase spending.
U.S. policy, dictated by Wall Street and the large banks, and carried out by the Fed and right-wing conservatives in government, is designed to stall the U.S. economy by taking money away from those who would spend it productively.
This is the reality of the U.S. economy and of the so-called "global" economy.
This is the "big picture". The little ups and downs in the stock market and the unemployment rate, and the phony low-balled inflation rate, are irrelevant to what is being done to the world's economies. Even raising the minimum wage, while it is long overdo, and will help individuals affected by it, won't prevent a global economic collapse which is the GOAL of the oligarchy. Then they will OWN everything.
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