China Inflation Highest in Nearly 12 Yrs

[Guest Tony n Terrific]

In the last 3 years the dollar has lost nearly 15% of its purchasing power in China. One day just like Japan China will have prices and wages as high or higher then the USA.

 

http://money.aol.com/news/articles/_a/chin...311055209990011

[rogerluli]

One day just like Japan China will have prices and wages as high or higher then the USA.

 

 

 

Perhaps you would be willing to elucidate your point further for those of us who are not privy to such information...

[griz326]

One day just like Japan China will have prices and wages as high or higher then the USA.

 

 

Perhaps you would be willing to elucidate your point further for those of us who are not privy to such information...

 

Roger, the point doesn't really need elaboration; it is simply the logical conclusion to the "world's most powerful economy" story. If the Chinese can hold the country together, the day will come when that will happen.

 

It's nice to believe the USA will always be #1, but the US needs to get on the stick for that to happen. :cheering::cheering:

 

For the sake of discussion consider this partially tongue in cheek reasoning:

 

Let's presume that the number of smart people, brilliant people and highly motivated people is a constant the world over (give or take a percentage point here and there). Let's also agree that opportunity energizes the highly motivated people (entrepreneurs, salespeople, inventors).

 

So what do these highly motivated people do? They use smart and brilliant people to seize opportunity. Based on percentages alone China will have a larger and larger number of people seizing opportunity over time. ...and well when you add in the raw number of workers to do the actual work! The Chinese will simply over run us in the economic world unless USCs get off their butts, re-enter the competition, contribute and change their fat, dumb and happy ways.

 

Just think of the percentage of fat, dumb and happy people in this country content to drink a 6 pack every night and boast that the USA will always be #1.

 

All of China probably doesn't have as many fat, dumb and happy people as we have right here in Montana. However, we are lucky because of the number of aging and infirm China must care for; it helps to offset the liability imposed by our fat, dumb and happy USCs!

 

 

As for inflation, it is just part of the economic cycle that China must contend with. We'll learn a lot about China as we watch that issue over the next few years.

Edited March 11, 2008 by griz326 (see edit history)

[Guest Mike and Lily]

China will raise interest rates and restrict the money supply to combat inflation. We will lower interest rates and print money to combat the recession at the expense of inflation and the dollar. That's the difference. Instead of an expanding economy with low inflation as China will have, we will end up with stagflation.