Thank you for that excellent article on China. I've copied it for long term retention.
Business Week magazine has been running periodic articles on the rapid and extensive growth in China, to the point that it became somewhat unbelievable... but now apparently confirmed by the Roulston report you provided.
One implication for investors, including those interested in the revival of gold, is the significant deflationary effect on the world's economy of China's arrival as the low cost producer in industry after industry. In the Dec 2, 2002, issue of Business Week, pages 60-61 appears an articl by Mark Clifford (Hong Kong) entitled "How Low Can Prices Go"---"China's Cheap Exports Worry the West". A related chart shows how China's PPI has declined from 100 in September 1997 to (approximately) 92.75 in Sept 2002. There are those who believe this deflationary effect requires the upward revaluation of the yuan (now about 8.28/dollar, I believe), and the resulting devaluation of the Greenback.
Question is, then, does one hold gold.....or yuan?
Just fishing....
Thanks very much, again, for the Lawrence Roulston report..
tso |
