It's a deal, Robert. And if I get don't get at least 2 out of three by, say 6 months from now I'll be the goat. Mark down 2/99 as the deadline.
I primarily mean that property prices would fall further, but I also believe that domestic good prices will, too because HK isn't as dependent on imports as we are. I feel strongly that we don't have higher prices here with the strong Dollar because we are rabid importers. I don't want to get into a debate on commodities, but their slump has been the primary reason why prices have stayed low here through the Dollar's ascent. You can argue that we don't import corn or similar items, but record harvests and new technology is yielding supersize crops. A good way to gauge how prices have risen here is not through goods but through services. That's way many economists have argued that a diverse list of popular services, such as a haircut or a movie should be included in the CPI.
Also, this example, much talked about recently may provoke a lot of response on the thread, but it is firm evidence that even various commodity related prices are too high:
The price of a Bbl. of Oil around 2 years ago was almost $25 a barrel. The price is now around $13. Gasoline at the pump around 2 years ago was about $1.60/gal. for unleaded regular. People bitched and Dole proposed to repeal the gas tax in an election ploy. I'm sure most people remember this. Now what is the price? about $1 - 1.15/gal. for unleaded regular, at least in the Northeast U.S.
According to my math, the current price per gallon is almost 20% too high. This is because the oil companies are screwing us, but regardless... it shows that prices here are still high even in respect to commodities.
Lastly, Regarding the lack of clarity on this thread concerning HK's economic woes, as some seem to disagree whether their are any, and as to the HK govs. supposed inability to adjust monetary policy, I submit to you the following, from a fine sight to boot.
afr.com.au
check out where it says "despite the caveat... |
