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China Cuts Banks Reserve Requirements by 50 Basis Points!

Today China also cut their bank’s reserve requirements by 50 basis points.  The general idea behind such a move is that if China cuts the size of the reserve its banks have to keep than the banks will take the difference and go out and invest it in the economy.  This move by the Chinese is inflationary and also shows their lack of confidence in the global markets.  Check out the 3 minute video above to get more details.