Saturday, June 19, 2010

Inflation – Interest Rate Rises – Negative Equity Etc Etc

China indicates it will allow yuan to strengthen

Economic warfare part deux, the consequences will be many and varied. the chinese say this is because of the global recovery!

Posted by enuii @ 03:59 PM (1668 views)
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6 thoughts on “Inflation – Interest Rate Rises – Negative Equity Etc Etc

  • stillthinking says:

    Good post quiet guy. They are panicking about inflation.

    How much will this affect the rest of the world though, because you often read that Chinese labour costs are a fraction of the sale price.

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  • stillthinking says:

    This also takes away a pillar of dollar strength.

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  • The price of Chinese products will not go up because everything they make is valued in USD and not yuan.

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  • mander: prices will go up, it has nothing really to do with the dollar, as the chinese would prefer to trade using the yuan, this will happen, much the same way wage inflation in china is taking hold.

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  • China is in the process of developing its internal market instead of relying on exports. Once that happens, Yuan no longer needs to peg to US dollars/Euro. Communist leaders know it can’t compete on cheap labour in the long run; so its consolidating its industry structure, shutting down those high energy consumption & emission plants and upgrading to high tech/high end products.

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