Comments on: Overheating China threatens global inflation Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: Haytt Tue, 19 Apr 2011 08:59:49 +0000 strongly agreed @AM EDT

By: mgunn Tue, 19 Apr 2011 01:27:30 +0000 The way this article is phrased is basically scapegoating.

The bottom line is our relationship with them is all by our choice (they had less choice, they were so poor and desperate they basically transacted under a system we designed, so blaming them is like blaming slaves.)

Also the supposed cure is really no simple cure for the topic at hand. The article double-talks in that it says blames them for not appreciating their currency, but then recognizes this would fuel inflation in the US. So what does the author truly suggest? Who knows.

Perhaps it would be better if the article states we benefited greatly from a trade relationship we designed, got a free ride, got used to it, and now complain it has to come to an end.

By: mikemm Mon, 18 Apr 2011 17:55:12 +0000 America is still the primary economic model for capitalism. China is just trying to follow the model the same as many other countries dipping their toes into a free market capitalism system. It worked well for the US for quite a while, but regardless of what Ayn Rand, the GOP, Corporations, and the wealthy staunchly defend, it is simply not sustainable. Resources, markets, needs for goods and services have finite limits.
I suppose we thought that China and other nations would keep low wages and supress the standard of living so Wal-Mart and others could keep prices low and keep expanding to pump up thier stock values.
We need to somehow tweak that model so that it is OK for profits and earnings not having to increase every year through consumption alone to be considered successful. Recycling, reuse, and other factors like providing for the general welfare have to also somehow fit in as profit incentives themselves. Keep making the same amount of widgets at the same selling price, but make more profits by polluting less, reducing waste, and helping the communities they reside in.

By: Santye Mon, 18 Apr 2011 11:17:14 +0000 @ fredicwilliams
Sites as Reuters should stop posting this kind of garbage anymore…

By: dzoo35 Sun, 17 Apr 2011 00:59:06 +0000 @fredricwilliams
4.5% currency appreciation in a near one-off sense does not make up for what has been a long run of inflationary pressure, a movement is clouded by the outright fabrication of data at times by provincial governments. Even Wen Jiaobao and others have addressed this.

Try checking out the food prices, housing rents and the like over the past 18 months, and tie that in with other normal measures. That’s pretty traditional fare for economics, and it will give you some idea of the reality. The landscape drawn by the author is accurate.

A note that I think the author might have tied into this; One of the true problems is the housing market bubble. The entire system is designed to almost entice Chinese to buy more houses rather than invest the money in other ways. The big question is whether or not the government can reign things in, or if we’re looking at a serious round of wealth destruction when the bubble bursts, and then a hard bottom.