November 29, 2007 (LPAC)--Chinese President Hu Jintao presided over a national meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee Nov. 27 in Beijing, to discuss increasing the macroeconomic regulation of the Chinese economy in 2008, as the way to ensure stable and sound economic growth. Chronic inflation and overheating are seen as key problems to be solved, Xinhua reported. A critical target is to achieve more in improving the general populations' welfare next year, especially the lives of the poor. The term being used by President Hu for the general welfare is "min sheng," (often translated as "general livelihood") which is famous as the third of Sun Yat Sen's Three Principles of the People (Nationalism, Republicanism, and General Welfare, based on Abraham Lincoln's "of the people, by the people, and for the people").

A few days earlier, Hu had called a national meeting of representatives of the non-Communist parties, independents, and industrial and commercial federations, for a discussion of China's economic situation and proposals for improvement. The Beijing government will soon hold a "high-level central economic conference," but the date has not yet been announced.

This is the second conference of the CPC Politburo since July on pressing economic issues. The July conference had already set macro-control targets, but prices continued to soar in the months since, as hot money fleeing the West is flooding the country. The Peoples Bank of China's latest report warns of the dangers of excessive growth, and states that "China still faces a severe situation in liquidity." Investment in urban fixed assets was up 26.9% so far this year, and China's forex reserves keep ballooning, now to over $1.43 trillion.

Were China to conceed to London and Washington demands to revalue their currency, even more hot money would come in, which could spark an violent explosion.