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The Masked Tulip

Is China Already In Hyperinflation?

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In the provincial city of Xian ArabianMoney visited an average department store and found Clarks shoes – made in China but a UK brand – selling for $220 a pair against $80 in Britain. This was far from an isolated example.We noted locally-branded short dresses cost about $500 each. That would buy you a good brand in the West End of London. Our guide told us that locals like to go to Hong Kong to shop whenever possible because prices are so high.They have faced the same hyperinflation in ordinary food items like pork or fresh vegetables. But the hyperinflation has been most notable in house prices. Around $210,000 for a 140-square-metre, three-bedroom apartment in Xian might be less than half the cost iof Shanghai, but then the average salary is less than $4,000 per annum.

http://www.arabianmoney.net/banking-finance/2013/04/22/is-china-already-in-a-hyperinflation/

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If one definition of hyperinflation is that people start to get desperate to exchange cash for anything of value, then it's almost being exported into places like central London.

Despite how much the 'capitalists' of the world fawn over China (and Russia), neither country has a particularly legitimate government subject to the rule of law - if you believe that we have issues here, then yes but not to anything like the same degree.. so the residents of those countries will try and buy assets outside as a hard-to-expropriate haven.

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In short,no.

I import from China and where i saw around 10% inflation in 2010-2011 in product prices since then there has been no price increases at all.

Most goods in China are priced by raw material cost and labour costs.Those are the big two over there nothing else amounts to much.

Its a mixed picture.Some factories turn you away unless you want very big runs as they are fully booked up for months and you have to wait.Others seem to have less work.I went to a factory for a product last year and wanted 400 units (2/3s of a 40 foot container) and they refused so i walked away (plenty of other products) but they have just contacted me and offered to do them now.That means they have no work as they are willing to ship a part container to Ningbo for me to get filled with other products.

There might be inflation in housing and "designer" goods,and as everywhere food,but no high inflation ,and in goods,no inflation in $ prices.(sterling a different thing).

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Ben has very helpfully spent the last 3 years inflating them whether they like it or not.

There is no escape for them.

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In short,no.

I import from China and where i saw around 10% inflation in 2010-2011 in product prices since then there has been no price increases at all.

Most goods in China are priced by raw material cost and labour costs.Those are the big two over there nothing else amounts to much.

Its a mixed picture.Some factories turn you away unless you want very big runs as they are fully booked up for months and you have to wait.Others seem to have less work.I went to a factory for a product last year and wanted 400 units (2/3s of a 40 foot container) and they refused so i walked away (plenty of other products) but they have just contacted me and offered to do them now.That means they have no work as they are willing to ship a part container to Ningbo for me to get filled with other products.

There might be inflation in housing and "designer" goods,and as everywhere food,but no high inflation ,and in goods,no inflation in $ prices.(sterling a different thing).

Thank you for posting this real life account. Any chance we could follow each other on twitter?

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Thank you for posting this real life account. Any chance we could follow each other on twitter?

I dont have a twitter account im afraid,i might have to set one up though i think.

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It's only hyperinflation if prices are changing quickly over time. Items like Clarks shoes have been so costly since they became available in China. It's odd to think of Clarks as a high brand item, but thats how they entered the market and they have been able to maintain their price for many years.

Another high brand product I've seen on sale over there is the Roewe 750 car, which has a high ticket price - we know it better as the old Rover 75 :)

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When someone posted an article on hyperinflation a week or so back it said in dollars you could live like a king very cheaply in Zimbabwe. So given all these prices are in dollars it sounds like price fixing (or more likely the tariffs on western imports that seem to be part and parcel of 'free' trade)

Or maybe given the quality of far eastern junk and the importance of shoes maybe they pay lots for western shoes (assuming clarks are still produced in Europe)

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  • 284 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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