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China Inflation Threat Underestimated

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http://www.telegraph.co.uk/finance/china-business/8448921/China-inflation-threat-underestimated.html

The era in which cheap Chinese exports helped to keep prices down is now behind us, according to the insurance giant's fund division.

Instead, "as inflation becomes more and more of a concern in advanced economies, China is going to be making things worse," said Brian Coulton, an emerging markets strategist at LGIM.

While many commentators suggest Chinese price rises are peaking, Mr Coulton believes that Beijing is not on top of inflation – expected to come in at 5.5pc for March – which threatens a more painful tightening process to rein in prices than many expect.

"This means rising risk to the country's macroeconomic stability and of growth falling from the current 10pc a year to 4pc or 5pc." Mr Coulton said.

If China's economic growth does halve as feared, it could have serious implications for the global recovery. LGIM's argument is that soaring food prices are not a temporary driver of inflation, but reflect underlying pressures from rising demand rather than one-off supply shocks.

ben-bernanke.jpg

One man will be happy, his plan to enforce China to revalue it's currency appears to be working if this report is accurate.

The irony that inflation might also destroy the US economy is probably lost unless the gamble is from the ruins the US will do better than China. Which I fear is a very stupid gamble to take.

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http://www.telegraph.co.uk/finance/china-business/8448921/China-inflation-threat-underestimated.html

ben-bernanke.jpg

One man will be happy, his plan to enforce China to revalue it's currency appears to be working if this report is accurate.

The irony that inflation might also destroy the US economy is probably lost unless the gamble is from the ruins the US will do better than China. Which I fear is a very stupid gamble to take.

Ben/King: There is no inflation and imported inflation will be 'temporary' and we will continue to be vigilant, though we will just ignore it for the time being.

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Inflation still running hi in China

http://www.theaustralian.com.au/business/markets/chinas-inflation-heats-up-to-54pc-in-march/story-e6frg926-1226039777889

CLOUDS have darkened over the Chinese economy with inflation running faster than expected, hitting 5.4 per cent last month, while Beijings efforts to cool booming growth appear to not work as well as expected.

This has bolstered expectations of further interest rate rises and other measures to tighten monetary policy as the Communist Party leadership attempts to wrestle with the conflicting problems

China’s growth eased slightly to 9.7 per cent for the first quarter of the year, down from 9.8 per cent in the last quarter of 2010, but higher than market expectations.

The government has been making a concerted effort to cool the economy primarily through a range of policy initiatives to curb the country’s galloping property market.

"The national economy had a good beginning with steady and relatively fast growth," said Chinese National Bureau of Statistics spokesman Sheng Laiyun said.

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  • 312 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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