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Realistbear

Chinese Inflation May Hit 8% In The Next 60 Days

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http://uk.finance.yahoo.com/news/World-red-alert-China-tele-2998191203.html?x=0

World on red alert over China's inflation

China could be hit by inflation of 7pc to 8pc over the next two months, panicking Beijing's policy-makers into dramatically raising interest rates, economists have warned.
The prospect of at least four further interest rate rises in the world's second-largest economy is likely to alarm global markets, which tumbled in shock at China's decision to raise rates on Christmas Day.
However, inflation has become the central concern for the Communist Party, which is struggling to contain growing outrage in the People's Republic over rising prices.
"If you look at the sequential growth over the last two months, inflation is rising at double digits. In the very worst-case scenario, if Beijing does not take action, we could see double-digit inflation this year," said Yu Song, chief China economist at Goldman Sachs (NYSE: GS - news) .

Far too much too quickly and what do they expect? HPC should be in the offing and just watch 678,898,343 people go beserk when they discover their houses have dropped more in value than the size of the loan taken out to buy them!

Edited by Realistbear

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The wage increases suggest the real level of inflation is running somewhat higher than the official published level.

Still I'm sure it's all contained and it's not like Bernanke will over heat the situation any further.

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Still I'm sure it's all contained and it's not like Bernanke will over heat the situation any further.

As soon as there is the slightest scent of slowdown we'll hear the rallying call for QE3 ... that will really help!

For those less well versed in the money dynamics, most of the QE money flows from UK/US to the developing world & China. Since most of these countries have either formal or informal currency pegs this translates to huge inflation.

Not that the US gives a ****

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This is the important bit from the article:

"You can describe the global economy as a race between the US and China to see who goes down first," he wrote. "If China manages its inflation, the US will cause the next crisis. But if China suffers a hard landing, the US trade deficit might even halve because of lower import prices. That would boost the dollar's value. The US would have lower financing costs for its debt and could enjoy a period of good growth."

The Bernanke's plan all along - to crash the Chinese economy?

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This is the important bit from the article:

The Bernanke's plan all along - to crash the Chinese economy?

Of course!

China's currency is effectively the dollar - their own choice.

Ben's blowing them up.

If they don't (hpyer) inflate they'll crash and burn.

Simples.

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Of course!

China's currency is effectively the dollar - their own choice.

Ben's blowing them up.

If they don't (hpyer) inflate they'll crash and burn.

Simples.

Except China has been actively encouraging Chinese citizens to buy the yellow and silver stuff in China Gold is sold at 30RMB above spot price per oz and apparently there is no reporting requirement as in the UK and USA. Gold can be bought from ANY bank in China and it is normal for citizens to have a small amount of metal. Compare to the western nations which are loaded with incredible amounts of one thing. Paper.

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Guest spp

Of course!

China's currency is effectively the dollar - their own choice.

Ben's blowing them up.

If they don't (hpyer) inflate they'll crash and burn.

Simples.

And the price of everything in the West!!??

I think a lot of HPC's underestimate the BRIC countries.

The chinese can afford to raise interest rates. But can the the U.S/U.K?? :blink:

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Guest spp

Except China has been actively encouraging Chinese citizens to buy the yellow and silver stuff in China Gold is sold at 30RMB above spot price per oz and apparently there is no reporting requirement as in the UK and USA. Gold can be bought from ANY bank in China and it is normal for citizens to have a small amount of metal. Compare to the western nations which are loaded with incredible amounts of one thing. Paper.

Ohhh but, but...

;)

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Except China has been actively encouraging Chinese citizens to buy the yellow and silver stuff in China Gold is sold at 30RMB above spot price per oz and apparently there is no reporting requirement as in the UK and USA. Gold can be bought from ANY bank in China and it is normal for citizens to have a small amount of metal. Compare to the western nations which are loaded with incredible amounts of one thing. Paper.

You are assuming that the yellow metal will hold its value.

I don't want to turn this into yet another gold bug conversation bcause trying to talk to gold bugs is like talking to a plank of wood IMPO but cannot you not see that the ramp in gold prices, along with other commodities, is part of the Bernanke's plan to bring down the Chinese economy.

Yes, you could have made a fortune buying gold and other commodities a year or longer ago but you only make that money if you cash out before the engineered crash to come.

I won't respond to any gold bull comments here because I don't want this thread going off-topic. Take it to the gold bug forum.

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You are assuming that the yellow metal will hold its value.

I've said a few times China has had hyperinflation twice in living memory and each and everytime they have had paper money. It is why people are tuned into this and keep a bit of PM rather than be 100% in paper.

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I've said a few times China has had hyperinflation twice in living memory and each and everytime they have had paper money. It is why people are tuned into this and keep a bit of PM rather than be 100% in paper.

And what has been the result each time? Only a handful of people hold gold and some of them - some of them - are able to use it to get out by the skin of their teeth.

The rest - even some of the richest and most powerful in China's history - have ended up lying in the gutter with their brains stabbed or shot out... perhaps with some of their gold still on them but usually nicked by those stronger... or simply no longer of interest to the mob as things like food become more important.

How many of the 1.3 million in China hold any sizeable amounts of gold? Less than 10%? Less than %5? Less again?

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So far the markets are taking this news as bearish. And China really is driving the stock market nowadays.

But to me this is positive. It shows demand side is so strong in China that firms are able to raise prices. And it also shows wages are really rising in the country that even in fiercely competitive industries firms are raising prices.

Now the Chinese government will have to step in with interest rate increases, something it has been avoiding.. and cool things down.

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You are assuming that the yellow metal will hold its value.

I don't want to turn this into yet another gold bug conversation bcause trying to talk to gold bugs is like talking to a plank of wood IMPO but cannot you not see that the ramp in gold prices, along with other commodities, is part of the Bernanke's plan to bring down the Chinese economy.

Yes, you could have made a fortune buying gold and other commodities a year or longer ago but you only make that money if you cash out before the engineered crash to come.

I won't respond to any gold bull comments here because I don't want this thread going off-topic. Take it to the gold bug forum.

Except those 'planks of wood' seem to be holding onto far more of their purchasing power than the paper bugs!

Things are only just getting interesting. I remember you asking about Silver about a year ago...Did you listen??? I doubt it.

By simply using something like a Goldmoney account you could easily have been 'cashing' out 70% more than you put in...right before this engineered crash you speak of.

You idiots got handed a lifeboat and jumped into the water.

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This is the important bit from the article:

The Bernanke's plan all along - to crash the Chinese economy?

Part of the logic of printing in the trade deficit nations is to force the chronic surplus nations to break the peg. It was notable that China and Germany were squeeling like stuck pigs when QE 2.0 was announced. You know a policy is working when..

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The wage increases suggest the real level of inflation is running somewhat higher than the official published level.

Still I'm sure it's all contained and it's not like Bernanke will over heat the situation any further.

Apparently Bernanke left a saucepan on the stove by mistake at Christmas and instead of cooking up a nice new year the pan melted, ruining the cooker and the pan.......

Edited by plummet expert

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  • 317 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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