Wednesday, August 13, 2008

and inflation is going to peak at 5% my Ar*e

China's cost spike

As China makes big moves to break into the first world, U.S. companies that manufacture there face soaring costs in a region that used to be the home of cheap, outsourced production. Here's why prices have jumped - and how 4 small companies are being crunched. -------------------------------- If the cost of Chinese made goods goes up we are all heading for a huge inflation increase.

Posted by mark @ 02:16 PM (634 views)
Please complete the required fields.

3 thoughts on “and inflation is going to peak at 5% my Ar*e

  • Whostolemyendowment says:

    China has benefited from the west’s outsourcing culture…..but is now going to kill their golden goose. There will be catastrophic disruption within Chinese manufacturings causing widespread internal unemployment. We in the west may face higher costs, but generally these will be on items which are not vital….unless you can’t live without your latest plasma TV, MP3 player or cheap toaster.

    I can only hope that enough of western manufacturing has survived to take up the slack….or there again, there is always eastern Europe, India, Mexico….etc. So China should think carefully before they make themselves too uncompetitive and expect us to just toe the line…..there is always another ‘low cost geography’, which may be closer to home than you thought.

    Please complete the required fields.

  • Anyone who thinks inflation will stay below 5% needs to trot along to the purchasing section of their company and ask them what they think, based on cost increases being claimed.

    If they pass the HR departments ask them about pay rises too.

    Most companies start their budgetting round in September and the results of the “1st cut” will not be encouraging.

    Please complete the required fields.

  • stillthinking says:

    Chinese goods becoming more expensive does not cause inflation in the UK. Inflation is when there is too much UK money floating around. Our inflationary problems are from excessive borrowing, our own excessive borrowing. Chinese goods becoming less cheap ( because they are way off the cost of making them here ) is to do with real cost increases in China, however, don’t panic because inflation will peak and then go down, so hang on to your cash and buy what you want later.

    Please complete the required fields.

Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>