Is China the bottleneck for inflation?

[blazespinnaker]

It seems to me all this monetary policy is forcing China (and friends) to massively hoard the world's money, damming it up into this massive ocean of reserves.

I think if something forces China to start spending all that money, then inflation will occur worldwide.

I believe a part of it is trickling out in to my local RE market in Vancouver.

Token link:

http://seekingalpha.com/article/1518...l?source=yahoo

I find this a bit funny though, that he's complaining about Chinese monetary policy. What does he want .. China to go into recession at the same time the rest of the world does? Sometimes I wonder if all doomers want is DOOM just for the fun of it.

[touchring]

Re: Is China the bottleneck for inflation?

Isn't it simple? The US prints money, and the money finds its way to China.

The more money the US prints, the more rich Americans will start to worry about the dollar, and even more money flows to China.

China will spend money, but they will want to spend it on real stuff like oil, iron, resources.

It seems to me all this monetary policy is forcing China (and friends) to massively hoard the world's money, damming it up into this massive ocean of reserves.

I think if something forces China to start spending all that money, then inflation will occur worldwide.

I believe a part of it is trickling out in to my local RE market in Vancouver.

Token link:

http://seekingalpha.com/article/1518...l?source=yahoo

I find this a bit funny though, that he's complaining about Chinese monetary policy. What does he want .. China to go into recession at the same time the rest of the world does? Sometimes I wonder if all doomers want is DOOM just for the fun of it.

[we_are_toast]

Re: Is China the bottleneck for inflation?

It seems to me all this monetary policy is forcing China (and friends) to massively hoard the world's money, damming it up into this massive ocean of reserves.

I've been wondering about this lately. China has been undergoing massive infrastructure building projects, foreign purchases of commodities and companies, and raised the standard of living of a couple of hundred million of it's citizens. How can they possibly be spending all this money and hoarding it at the same time? I'm wondering if most of the Tbills and reserves have already been leveraged. If so, the ripple effect from their bubble burst could be every bit as large as our own.

No data to back it up, just speculation.

[touchring]

Re: Is China the bottleneck for inflation?

I've been wondering about this lately. China has been undergoing massive infrastructure building projects, foreign purchases of commodities and companies, and raised the standard of living of a couple of hundred million of it's citizens. How can they possibly be spending all this money and hoarding it at the same time? I'm wondering if most of the Tbills and reserves have already been leveraged. If so, the ripple effect from their bubble burst could be every bit as large as our own.

No data to back it up, just speculation.

they are probably doing both at the same time, hoarding to ensure the yuan does not appreciate against the dollar, while spending whatever they can on real resources.

this might burst one day, but before that happens, china will be owning a lot of mines and oil fields all over the world, obtained at a cost lower than what it takes to maintain the us carrier fleets.

[GRG55]

Re: Is China the bottleneck for inflation?

Isn't it simple? The US prints money, and the money finds its way to China.

The more money the US prints, the more rich Americans will start to worry about the dollar, and even more money flows to China.

China will spend money, but they will want to spend it on real stuff like oil, iron, resources.

And apparently Vancouver real estate...

...I think if something forces China to start spending all that money, then inflation will occur worldwide.

I believe a part of it is trickling out in to my local RE market in Vancouver...

VancouverGoinUp yet again?

...Growing consumer confidence levels have prompted a serious upswing in home buying activity in the Greater Vancouver Area, with sales in June (4,259) the second highest on record for the local real estate board.

From White Rock to Vancouver, radiating out to the Fraser Valley, bidding wars are breaking out on well-priced product. In Kitsilano, an estimated 50 per cent of housing is selling in multiple offers. Low interest rates and increased affordability – average price is still significantly lower than one year ago – have served to stimulate market activity.

Inventory levels have been on the decline in recent months, placing greater upward pressure on values. First-time buyers are driving freehold housing sales at the $600,000 price point, while those looking at more affordable alternatives are considering condominiums starting at substantially less. Balanced market conditions prevail overall. Pent-up demand has also been building, with local purchasers and international investors both active in the market...

Good thing that $600k first-time buyer price point is in Loonies...just imagine how hard that would be on first-time buyers if it was real money...:rolleyes:

[Godozo]

Re: Is China the bottleneck for inflation?

Calculating from X-Rates.com, 600,000 Canadian Dollars is now worth 555,500 US Dollars. While not steady, hardly "unreal money" at the moment.