Thursday, January 15, 2009
3-4 years to become 2nd
The demand from China will be inflationary in the end, there can be no doubt of that because of finite resources. But this won't be inflation as in an over-expansion of the money supply, this will be goods becoming more expensive through shortage. If China manages to continue growing at 6% a year, perhaps that could be considered a collapse given their previous rate of expansion, but it isn't a collapse. So from this, there is a much shorter wait to the embedded UK inflationary problems than Japan had/has. But although the UK government seems to be under the impression that restoring inflation is good for the economy, it isn't because we will ultimately be left out in the cold as a nation dependant on imports but useless at exports. Exports collapsing as we speak.