Letters to the Editor - 29/07 - Church loans, China economy, Best of Twitter

Church loans

[Re: Church of England launches probe into link with Wonga, Friday]
The Church should be applauded for the proposed venture into the payday lending market. Its decision is laudable not because there is anything evil about Wonga, nor because of the supposed moral desirability of constraining reckless capitalism. The archbishop’s intention to outcompete existing players is a market solution for an issue too often obscured by misguided calls for legislation. By planning to increase consumer choice, the Church displays a better understanding than those calling for bans on these companies.

Richard Bennett

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China economy

[Re: China’s false stability could be exposed as growth model creaks, Thursday]
The author neglects to mention the progress being made towards solving China’s problems. The authorities recognise the issue of excess credit, and are cracking down on the shadow banking system that props up many of the “zombie companies”. In June, figures show that the M2 money supply rose 1.8 per cent less than in the previous month, the second consecutive decline in the rate of monetary expansion. It is misleading to raise the issue of excess credit without pointing out that the current trend is towards slower expansion.

Earl Robinson

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BEST OF TWITTER

Those thinking Japan inflation is good are presumably not paying the 5.7 per cent fuel and utility cost rise.
@notayesmansecon

The payday abuses highlight need for more competition in banking with more sources of finance.
@ChukaUmunna

Who wants us in the EU? Lobbyists, multinationals and other corporate interests.
@DanHannanMEP

New Bank deputy governor a professional civil servant. Watch Yes Minister to see how they behave.
@asentance