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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Moominoid who wrote (52615)6/20/2006 1:06:45 AM
From: regli  Respond to of 116555
 
"I think that China is really "riding the tiger" - they didn't think about how to get off when they got on."

I agree but it is a highly inflationary tiger and as we can observe there are some real cracks developing in China. This arrangement really is still exporting inflation from the U.S. into China and now we are starting to see the first phase of the feedback loop of that inflation back into the States. It might have served them both for a time but now the downside is becoming more and more apparent.