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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 387.98+1.3%4:00 PM EST
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To: TobagoJack who wrote (67677)10/31/2010 11:14:52 AM
From: carranza2  Read Replies (3) of 218068
 
Haven't followed the PRC's printing, but I really cannot see how global deflation can possibly result from its over-printing. Prices will end up higher in China ergo ditto for production costs, too, resulting in higher prices globally, dampened to some degree by any purchaser's overprinting.

The rate hike was not taken seriously, it should have, since from everything I see the Chinese move very slowly and very deliberately. The same is true of the slight but deliberate move up in the yuan.

The message I'm getting is that China wants to control inflation, not get caught up in a property bubble like the one the rest of the globe suffered. But it might be too late because property bubbles require drastic action, and it seems that the Chinese are loath to do anything decisively. The intra-bureaucratic negotiations must be very interesting. I think they do not wish to disappoint entrepreneurs who are the source of employment. Putting them in jeopardy puts the whole export model in jeopardy.

Given modernization, my guess is that the primary focus in China is to provide as much employment as possible because the safety nets for the unemployed are very minimal.

Just guessing.
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