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


To: andiron who wrote (65472)5/11/2007 2:06:34 AM
From: mishedlo  Respond to of 116555
 
shouldn't higher yuan eventually mean higher inflation in US thru imports

In a vacuum, yes.
But we are not in a vacuum.
Look at prices of goods from China vs input (raw materials prices). Yes prises are up, but 200%? No, of course not.

Prices can only rise above peoples ability or willingness to pay for them. Some things are inelastic (gasoline), but most things are not.

Mish



To: andiron who wrote (65472)5/11/2007 2:07:40 AM
From: mishedlo  Read Replies (2) | Respond to of 116555
 
Retail Sales Bomb
globaleconomicanalysis.blogspot.com
Mish



To: andiron who wrote (65472)5/21/2007 11:18:40 PM
From: GST  Respond to of 116555
 
<shouldn't higher yuan eventually mean higher inflation in US thru imports//> Yes -- we are witnessing the end of cheap oil, cheap money and cheap labor. In a word we are witnessing the end of the 'strong' dollar.