China inflation threat is for real

[Guest Tony n Terrific]

My wife has told me that prices of a number of items have really jumped up in price recently.

If Chinese goods reach parity with the West price competitivenes and the quality of their products remains suspect. Things are going to change real quick in the world markets.

 

http://www.247wallst.com/2008/06/chinas-in...4559x1200233430

Edited July 2, 2008 by Tony n Terrific (see edit history)

[pbatt]

Yes in many ways the days of cheaper goods are disappearing. Wages are going up in China also. A year ago a business owner in Hangzhou told me many companies were leaving China then because of labor costs.But also the cost of raw materials and shipping.

 

Some went to Vietnam but the costs of goods there are already higher than China. Most are going to Malaysia,Indonesia and India,Thailand also.

 

But sooner or later they will have the same problems there. China's birth policy is starting to create a labor shortage of younger workers.

 

China actually wants to get away from the reputation of being a place for cheap goods,they want to focus on technology instead. They already graduate more engineers in one year than we have totally in this country.

 

Costs of goods are also going up in this country.

[Guest Mike and Lily]

Yes in many ways the days of cheaper goods are disappearing. Wages are going up in China also. A year ago a business owner in Hangzhou told me many companies were leaving China then because of labor costs.But also the cost of raw materials and shipping.

 

Some went to Vietnam but the costs of goods there are already higher than China. Most are going to Malaysia,Indonesia and India,Thailand also.

 

But sooner or later they will have the same problems there. China's birth policy is starting to create a labor shortage of younger workers.

 

China actually wants to get away from the reputation of being a place for cheap goods,they want to focus on technology instead. They already graduate more engineers in one year than we have totally in this country.

 

Costs of goods are also going up in this country.

 

Commodity inflation is everywhere now.

[rogerluli]

Yes in many ways the days of cheaper goods are disappearing. Wages are going up in China also. A year ago a business owner in Hangzhou told me many companies were leaving China then because of labor costs.But also the cost of raw materials and shipping.

 

Some went to Vietnam but the costs of goods there are already higher than China. Most are going to Malaysia,Indonesia and India,Thailand also.

 

But sooner or later they will have the same problems there. China's birth policy is starting to create a labor shortage of younger workers.

 

China actually wants to get away from the reputation of being a place for cheap goods,they want to focus on technology instead. They already graduate more engineers in one year than we have totally in this country.

 

Costs of goods are also going up in this country.

 

Commodity inflation is everywhere now.

 

In a world economy high wages enjoyed in the west by workers are bound to fall substantially... Recently a whole fleet of airplanes was mothballed by our hometown airline, Midwest. With too many pilots their 125K salaries are headed south, WAY south...31K was the figure I heard... If China has issues then the US has multiples of those same issues...

[tsap seui]

The whole dang world is going to hell in a handbasket, I tells ya.

 

Me? I just want a grip on the handle of that thar handbasket!! B)

 

tsap seui

[rogerluli]

The whole dang world is going to hell in a handbasket, I tells ya.

 

Me? I just want a grip on the handle of that thar handbasket!!

 

tsap seui

 

Fortunate Americans will have minimum wage jobs...

[Corbin]

B) The whole dang world is going to hell in a handbasket, I tells ya. B)

 

Me? I just want a grip on the handle of that thar handbasket!!

 

tsap seui

 

Fortunate Americans will have minimum wage jobs...

Not far from that myself.............

Back in 04' is when the computer repair company I worked for let me go, but I blame some of their losses on stupid idiots that bought the division from Lockheed Martin.

Edited July 2, 2008 by Corbin (see edit history)

[rogerluli]

B) The whole dang world is going to hell in a handbasket, I tells ya. B)

 

Me? I just want a grip on the handle of that thar handbasket!!

 

tsap seui

 

Fortunate Americans will have minimum wage jobs...

Not far from that myself.............

Back in 04' is when the computer repair company I worked for let me go, but I blame some of their losses on stupid idiots that bought the division from Lockheed Martin.

 

Didn't Einstein say something like...The two infinite things are the universe and human stupidity. And I'm not sure about the universe...

[Yuanyang]

A segment on NPR last month (or 2) ago had a story of the dismantling of a shoe manufacturing facility in China. The equipment inside was being sold to Vietnam where the new facilities are being built.

 

This is in keeping with China's grand plan (per the reporter) of moving or allowing to fail less sophisticated (read: labor intensive) businesses while promoting more technology based businesses.

[griz326]

Parity has almost arrived in the big cities of China.

 

The Kung Fu Panda tickets in Guangzhou cost the same as they would have cost in Kalispell, Montana.

 

A tasty but modest dinner last night cost the same as a modest meal would have cost back in Montana.

 

I doubt our wages will fall, but our buying power is clearly plummeting.

[Guest Mike and Lily]

Parity has almost arrived in the big cities of China.

 

The Kung Fu Panda tickets in Guangzhou cost the same as they would have cost in Kalispell, Montana.

 

A tasty but modest dinner last night cost the same as a modest meal would have cost back in Montana.

 

I doubt our wages will fall, but our buying power is clearly plummeting.

 

Somehow I don't think Guangzhou and Kalispell is a great comparison. How about comparing Guangzhou with LA or San Francisco instead?