Dividends and China pulls economic targets, signals grim future for workers

If you listen to the President who is a cheerleader for the economy, he expects a V shaped recovery. He says it is because he needs it for re-election, he is a cheerleader for the economy and hopes, he has no idea, or the economy is likely to be more L shaped. It will likely be some of the above, but you can look to other countries to see how they are looking towards their economies recovering.

In an article by Nathan Vanderllippe, the Asian correspondent of the Globe and Mail, the Chinese government planners do not expect economic difficulties to ease any time soon.

China has the ability to move its people into where ever it sees fit, believes the challenges ahead will have never been seen before. Prior to the COVID shutdown, the economy was growing and for the past 20 years, the economy has only been growing. The government will earmark nearly $400 billion for local governments to bolster employment, uphold basic living standards, and support private companies through reductions in rental costs and and subsidies for consumption.

The plans call for $20 billion to put more than 35 million people through vocational skills training in the next 2 years, while expanding the colleges by 2 million.

Government revenues fell by 14.5% in the first 4 months of 2020. Government spending on COVID was $30 billion. Do you believe the numbers from China are higher?

Over 560 million people have no bank savings which is not good for savings and investment says Ding Changfa, a professor of economics at Xiamen University.

Linking to dividend paying stocks, across the world there are huge opportunities and challenges. As you do your investing understand how your companies make a profit. As governments continue to use its monetary and fiscal measures, some of them will benefit dividend paying companies as they pay less fees.

There are more questions than answers, till the next time – to raising questions.

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