To turn on the water washed away one after another U.S. interest rate cut in China?.

<P> U.S. Federal Reserve Board (Fed) decision 30, the federal funds rate, which commercial banks to further lower the overnight lending rate by 0.5 percentage points, from 3.5% to 3%. .</ P> <P>: http://finance. This is the Fed to stop the recession happened since September last year, the fifth rate cut since, and this is an emergency Federal Reserve cut interest rates following the September 22 after a 0.75 percentage point .just over a week for the second consecutive rate cut. .</ P> <P> after the outbreak of the subprime mortgage crisis, the U.S. government to save the economy, with the "medicine" of the fierce indeed unprecedented, means as much to make the world dizzying. .We recall that the subprime mortgage bond crisis, the early crisis in the United States immediately to inject a large number of financial institutions; followed one after another rate cut; and later made available for personal and small business tax, support the expansion of consumption and investment, by 1460 the total .billion economic stimulus package. .Just signs of a recession in the economy, the U.S. government to pull out all the stops so bringing more of both, and vigorously to save the U.S. economy, the international community to the U.S. market system is so sound, control and regulate the ability of the economy to re-examine. .</ P> <P> However, such a series of U.S. interest rate cut to the Chinese macro-control of monetary policy in particular, out of a big problem. .Difficult is the performance of China and the U.S. economy contrary. .U.S. economy entered a recession, but there are signs of overheating Chinese economy; the United States to prevent a recession, while China has to prevent overheating of the economy; the United States to implement the loose monetary policy, China has to implement tight monetary policy. .The result is that successive U.S. interest rate cut, while China has continued to raise interest rates. .The depth of the Chinese economy into the world economy today, especially in increasingly close economic ties with the United States now, there is such a departure from the situation, very weird. .</ P> <P> successive U.S. interest rates on Chinese monetary policy will have a great impact. .On the one hand China to prevent structural price rises from evolving into significant inflation of the task is arduous, to continue raising interest rates requires very urgent; the other hand, China rate hike, while the U.S. series of interest rate cuts led to inversion of Sino-US spreads (RMB .rates were higher than U.S. interest rates), the relative depreciation of the RMB for the dollar will continue to promote the future of global capital will be further into China, making China's excess liquidity situation deteriorate further. .Increased excess liquidity could lead to asset price inflation continued to climb even made a reality. .This has created such a situation: seeing prices steadily rising, but can not use monetary tools to raise interest rates; use the deposit reserve ratio can be recycled and excess liquidity, but the U.S. has cut interest rates, the dollar has been devalued, and the Chinese liquidity .surplus increased. .It is as if we raise the statutory reserve ratio is in the "shutoff", while the U.S. rate cut is in the "water", not to "water inlet" plug, do not fundamentally solve the problem. .Some people think that, at present, the central bank has lost the initiative in monetary control, though not necessarily correct, but it does make sense. .Series of at least U.S. interest rate cut in the Chinese monetary policy dilemma situation. .</ P> <P> how to deal with it? .The current should accelerate the pace of yuan appreciation, appreciation of the renminbi is expected to shorten the time; substantial increase in labor, environmental protection, resources and energy costs; quickly introduced to encourage businesses and individuals of foreign direct investment incentives; continue to raise the deposit reserve ratio, the excess liquidity of commercial banks to recover .. .</ P> <P> while maintaining the stable development of the current economic market has a very special significance. .The stability of the stock market to move upwards, can absorb a lot of excess liquidity to prevent economic overheating and inflation is good. .If the current stock market crash or even a stock market crash, then the current economy is undoubtedly worse. .The stock market will certainly attract a large number of liquidity on the one hand the flow of savings and other financial products, on the other hand will be above the flow of real estate and other commodities will drive real estate prices, and prices continued to rise. .Therefore, to build the stock market and prevent the stock market ups and downs of the stock market a good investment of capital and consumer capital reservoir, to better absorb the current excess liquidity. .</ P>.