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Re: World on RED ALERT over China inflation
uh oh....Originally posted by Mega View Post
"..China could be hit by inflation of 7pc to 8pc over the next two months, panicking Beijing's policy-makers into dramatically raising interest rates, economists have warned..."
(meanwhile the party sez the 'official' rate = 4% ? whys that sound familiar...)
At stake is the future of the global economy, according to Andy Xie, the former China economist at Morgan Stanley . Writing in Caixin , a Chinese magazine, he said that the two most likely candidates to trigger the next financial crisis are either the US's sovereign debt or China's inflation.
"You can describe the global economy as a race between the US and China to see who goes down first," he wrote. "If China manages its inflation, the US will cause the next crisis. But if China suffers a hard landing, the US trade deficit might even halve because of lower import prices. That would boost the dollar's value. The US would have lower financing costs for its debt and could enjoy a period of good growth."
In food markets around Shanghai, the price of meat and vegetables has risen by at least 50pc in the past year, sparking anger among poorer shoppers who spend up to half of their income on food.
In some parts of China, the price of basic foods has doubled...."
will the party pop the bubble/snatch the punchbowl/stop the merrygoround or will they "roll the dice" ?
and whats gonna happen at the LME on tues? (they closed mon?)
oh baby.... my VIX is krankin. -
Re: World on RED ALERT over China inflation
Yahoo Finance.?!?Originally posted by Mega View Post
Mike, seriously...Comment
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