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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (68083)	11/12/2010 8:32:38 PM
From: TobagoJack	Read Replies (1) \| Respond to of 217948

suspect team usa shall soon enough be granted its wish, inflation, and when coupled with continuing printing imperative to sustain unsustainable empire, leading on to hyperinflation, which then of course give way to destruction of middle class, enhancement of tyranny, etc etc in the mean time, just in in-tray From: M Sent: Sat, November 13, 2010 9:26:10 AM Subject: Observations - Week of November 15th Note that in line with Heinz's chart earlier this week, the data that is printed in the Wall Street Journal every Saturday notes that insider selling has hit new highs for the year. Insiders sold $1.531 billion this past week and has sold $2.845 billion in the past two weeks. This vastly exceeds the selling at the last top in April, when we saw selling of $1.14 billion in one week and $2.48 billion over three weeks. Question for the gallery / economists. Is one of the reasons why the US didn't see inflation in goods the last time around due to the simple fact that in a globalized economy, prices are set by the low cost producer so that negative interest rates doesn't necessarily affect consumer goods in a higher cost country? Has that game now ended now that the traditional low cost producer is now seeing some significant inflation? (I assume it is China's inflation numbers that spooked the markets). At dinner last night, a colleague noted that eating breakfast at a tsang-tsang-tang is actually more expensive in Shenzhen than in Hong Kong. And coincidently, that observation was on the front page of the South China Morning Post this morning.... M SNIP: The "made in China" tag that seems to appear on almost everything these days does not necessarily mean those products are cheaper on the mainland. Many Shenzhen housewives are upset that a lot of mainland-manufactured groceries and items cost less to buy in Hong Kong. Such is the effect of inflation across the border. Han Mei , 57, a retiree from Henan who has lived in Shenzhen for more than a decade, was forced to give up eating Fuji apples from Shandong every day after the price of her favourite fruit rose from 6 yuan (HK$7) a kilogram last year to 16 yuan now. "I used to have a Fuji apple every day but can't afford it any more now that they cost around 5 yuan each," she said. "I haven't eaten an apple for a week." Take Fuji apples, for example. They cost about HK$10 for four in supermarkets in Hong Kong, or 2.15 yuan each, half the price at wholesale markets on the mainland. The price of imported fresh food is also rocketing. At a Jusco supermarket in Shenzhen, Red Delicious apples from Washington state in America sell for 34.40 yuan a kilo, or about 8 yuan each. In Hong Kong, they cost only HK$3.50 each. Kiwi fruit from New Zealand cost 3.90 yuan each in Shenzhen, but in Hong Kong, HK$10 buys five of them. What really puzzles Han and other mainland housewives is that even goods made on the mainland are cheaper in Hong Kong. Shenzhen housewife Yuan Jing , who visits Hong Kong every two weeks, found almost all mainland-made products such as shampoo, toilet paper and dog food were more expensive in Shenzhen. The mainland's Engel's Coefficient - which refers to the proportion of a family's spending on food to total consumption - is about 40 per cent. Because Beijing does not include rent and mortgage payments in its calculation, the real CPI is likely to be higher, considering the speculation in the property market. The average cost of housing in 70 mainland cities was up 9.1 per cent year on year in September and 8.6 per cent last month.