Hi Snowshoe, <<China>> is a small country, do not worry about it:0)
<<Deflation>> is good, because it is productive, as in same value for less price;0) Just imagine, Dell PCs, Cisco routers, Intel compatible chips, generic drugs, patented drugs, designer foods, PhDs, MDs, nurses, rockets, cars, etc., and later, genetic clones, airplanes, big ticket items. This will not just be Japan, Part II.
<<In the case of Hong Kong, its currency peg to the hitherto high-flying dollar has magnified deflationary pressures. The territory is expected to report on Tuesday that prices fell in June for the 44th month in a row>>
We in service-intensive HK are not able to fight the service deflation coming from China, and so we go for a ride with the wave. Naughty girls are less expensive now, reported by bad boys.
In the meantime, I must figure out how to avoid having my capital from deflating.
Chugs, Jay |
