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Inflation running rampant in China; this past month alone, the cost of foodstuffs in China rose by approximately 24 percent - "Inflation is the stuff public unrest is made of"
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This Link is located in the Public Channel Chinese Bubble.
Posted by ian 1 year 243 days ago (haaretz.com). Views: 396
Tags: china |
| Related Tags: news olympics chinese bubble gold inflation dollar housing bubble |
China has the largest foreign reserves in the world, estimated at a staggering $1.4 trillion dollars, nearly 70 percent of which is held in U.S. dollars. Even with the gradual, yet significant, adjustments of the yuan's value during the past two years, the dollar's dive means that Chinese laborers are working harder to sustain the Americans' high standard of living, which for years has relied on borrowed money - not on American production. A financial meltdown in the U.S. will affect China and its accumulated wealth badly.
Secondly, China is constantly in search of resources. The explosive growth of the Chinese economy has made the need for fuel and raw materials a priority, sending the price of commodities internationally sky high. Coupled with the declining value of the dollar, the main currency of international trade, not only are essential commodities, like oil and grain, enormously expensive, but this past year the situation has been exacerbated by growing concerns that climatic changes may result in serious global shortages in basic foodstuffs. This past month alone, the cost of foodstuffs in China rose by approximately 24 percent. Inflation and scarcity, particularly of basic necessities, including heating fuel, is the stuff public unrest is made of.
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ian said |
| 1 year 243 days ago |
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