Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dan3 who wrote (77834)	4/17/2008 7:44:24 AM
From: ajtj99	Read Replies (1) \| Respond to of 116555

Average wages in China are closer to $800/year than $2,000/year. Over 75% of the people live in the countryside. 90% of the workers in China make just enough to feed and shelter themselves. Only 10% have real disposable income.

To: Dan3 who wrote (77834)	4/17/2008 10:57:45 AM
From: mishedlo	Respond to of 116555

A billion people in China see their average wage go from $2k to $5k, while 250 million in the US see their wage go from $40k to $38k - and the result is a global inflation But that's exactly what's causing the inflation No it's not because inflation is not about prices. Besides, wage increases do not cause prices to rise. An increase in money supply does. However, there is rampant money supply increases in China. Physical printing to suppress the Renminbi on a massive scale. That forms the base of the misguided "savings glut" theory in China. Printing RMB to exchange for dollars is not a savings glut. And its nonsense to think the Fed can control monetary inflation in China. Mish