hello kyrosl, do not fret for the chinese truckers, they are only doing what they are told and in truth sanctioned to do.
and as one result you shall be mobilized to help him out.
for, you must see, that inflation can be defeated in many ways, and the top-of-mind ways from the truckers' perspective would be
(i) raise prices on their bosses
(ii) raise hell on govt to encourage price controls and enable fiscal discipline and and and ...
(iii) raise shout to banks to enhance interest paid on savings
...
my simple wager is that the truckers are realistic, not trying for (ii) or (iii), but shall win on (i), specifically to the tune of 20-25% wage increase.
you see, 20-25% wage increase google.com for this year, as was for 2010, is in alignment with officialdom policy chinalawfirms.cn , to force feed a raising of china cost to the rest of the world without manipulating the china rmb exchange rate.
the trouble with typical american analysis of china is that the politically biased and so polluted 'analysts', if you can call them that, would almost invariably note, (i) china growth is not sustainable, and (ii) china exchange rate should rise.
the analysts and their political bosses should first decide, which one is it? is china to soon collapse and its exchange rate with it, or should exchange rate go high along with the underpinning economy?
to term american political class cretins is too kind.
iow, given that americans had complained before and so vociferously on china 'exporting' deflation, now china 'decided' to instead export inflation. trust your fellow and fellowette americans are finding 'inflation' more palatable cup of coffee ... oops, i meant tea :0)
american economists are a funny lot. they think inflation and deflation can e exported and imported via goods channel, and do not give thought about where the inflation is actually originating from, and by what global reserve currency and its printing.
do repeat after me and please remember, "inflation is good for china, especially food inflation, and particularly inflation associated with wages".
the usa fed wishes to encourage wage inflation. the usa fed is succeeding in its policy to spark wage inflation. excellent work.
keynesian voodoo economics is working as expected and working fine, but its effect cannot be constrained w/i any globalized borders, especially if said border is around the core of an empire that must sustain itself on debt funded by the periphery, and that its own manufacturing system is effectively broken even as people line up for burger-flipping jobs at 10k per annum.
i must say, the global equalization of revenue and cost is proceeding rather more rapidly than i had thought even though i still guess a 7-15 years path to teotwawki. the empire is still strong, can withstand another 4 years of obama 'leadership' to be followed by 8 years of palin, trump, and/or clinton, and then we would, should, and must be ready for the main event.
btw, i read usa corporate press for the fun of it - and i start with the comic page and work my way to the cover page. for useful information i must read chinese officialdom press. |
