Inflation Stalks China’s Economy

From Market Watch:

China’s consumer prices accelerated to a-three-year high in June as food prices soared 14.4%, according to data released Saturday, reaffirming expectations that Beijing won’t be in a hurry to relax its monetary stance even if it may not aggressively pursue more interest-rate increases.

Monthly data released by the National Bureau of Statistics of China showed the consumer price index for June climbed 6.4 % from the same period the year before. Many economists had expected the rise to be between 6.2% and 6.4%…

When considering China, it is best to keep in mind one very important quote, as it explains it all:

…We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed…

All that talk about China becoming predominant and having a vibrant economy and showing the world how it is done is so much nonsense.  All China has demonstrated is that if you allow free scope to unbridled greed you can get ahead for a bit.  Hitler did it, too – he allowed Germany’s industrial titans to do whatever they wanted in the pursuit of profits and, my goodness, how the money rolled it.  But because the government wasn’t by consent of the governed – and thus there was no freedom, including the freedom to check up on what business and government was up to – the whole thing became over strained.  A valid argument can be made that part of the reason Hitler struck in 1939 – rather than 1942, as he had originally planned – was because he was warned that the German economy was on the verge of collapse.  Too much government spending, too much sharp financial practice…the wheels were coming off.  It was either retrench (and have rising unemployment and resign all dreams of conquest) or attack.  It was only by plundering Europe that Germany managed to keep afloat during the war – hardly a valid economic model, but China’s is no different from Nazi Germany’s.

Evil can have its day.  Evil can astound the world.  Evil can look like a winner – but only over a relatively short period of time.  China got a bit lucky in that American economic policy during the past 20 years has essentially encouraged China to pick up our manufacturing capacity.  This gave an immense shot in the arm for China and allowed it to go on longer than it should…but now the patsy (us, that is) can’t resign any more wealth to China; now China’s bad debts have built up; now China’s fake money is under pressure; now China needs 9% growth and there is simply no way to obtain it…except by inflationary policies, which is what China did over the past two years.  But that comes with a price, too.  The financial chickens are coming home to roost in China.

To think that a horrific, corrupt and anti-human tyranny such as that which governs China could ever compete with a free people was, is and always will be absurd.  A temporary advantage is the most such a government could obtain.  All those idiots who have poured investment money in to China are about to find out just how dumb that idea was.  China is heading for a fall – whether it will result in revolution or some sort of foreign adventure as China’s government tries to hang on remains to be seen – but it cannot be sustained as is.  It will have to change – and how they get out of it remains a complete mystery:  in addition to dealing with a corrupt government and a false economic model, China is about to enter demographic decline as the anti-human “one child” policy bears it’s bitter fruit.

Really bad times are coming, folks; just get ready for them.

19 thoughts on “Inflation Stalks China’s Economy

  1. neocon1 July 10, 2011 / 2:27 pm

    Really bad times are coming, folks; just get ready for them.

    al-0 hussein is already preparing his civilian army of union goons, innercity thugs, and racist black panthers and nation of islam crazies.

    Be armed and ready..cling to your Bibles.

  2. neocon1 July 10, 2011 / 3:00 pm

    Palin: “The Sugar Daddy Has Run Out of Sugar; Now We Need New Leaders”

    Barack Obama’s big government policies continue to fail. He should put a link to the national debt clock on his BlackBerry. The gears on that clock have nearly exploded during his administration. Yesterday’s terrible job numbers should not be a surprise because it all goes back to our debt. Our dangerously unsustainable debt is wiping out our jobs, crippling our economic growth, and jeopardizing our position in the global economy as the leader of the free world.

    As a governor, I had to deal with facts, even unpleasant ones. I dealt with the world as it is, not as I wished it to be. The “elite” political class in this country with their heads in the sand had better face some unpleasant facts about the world as it is. They’ve run out of money and no amount of happy talk will change this reality.

    …We won’t achieve long-term stability if we continue borrowing massive sums from foreign countries and remain dependent on foreign sources of oil and gas.”…It’s a matter of public record that I did not go to Harvard Law School, but I can add.

    The same “experts” who got us into this mess are now telling us that the only way out of our debt crisis is to “increase revenue,” but not by creating more jobs and therefore a larger tax base; no, they want to “increase revenue” by raising taxes on job creators who are taxed enough already! As Margaret Thatcher said, “The trouble with socialism is that eventually you run out of other people’s money.” That’s where we are now. Hard working taxpayers have been big government’s Sugar Daddy for far too long, and now we’re out of sugar. We don’t want big government, we can’t afford it, and we are unwilling to pay for it.

    • Amazona July 10, 2011 / 3:49 pm

      But…But…some dude who writes for the Economist has declared that our debt, 65% of GDP, is “perfectly affordable”.

      That’s like telling a guy who is 200 pounds overweight, developing diabetes, and has high cholesterol and high blood pressure, that he is “perfectly healthy” because he’s not dead. Yet.

      Cecil has written here many times about the reality of life in China for the average citizen and I think he knows what he is talking about. But the nation is run by Leftist ideologues, no matter what the guy on the street thinks or how he lives. It’s just like here—how many people know what system we are run under, how it relates to the one developed in the 18th Century, or any of the other facts of political reality?

      We are now under a hard-core Marxist administration which is making radical and dramatic changes to our basic economic system, yet few Americans would support this if they understood the reality of it, instead of just accepting the fantasy versions fed to them by the Ruling Elite. These two big nations have a lot in common, including being run into the ground by the Left while an uninformed and apathetic citizenry lets it happen.

      • MontyBurns July 11, 2011 / 6:08 pm

        “We are now under a hard-core Marxist administration”

        No wonder you get so many things wrong, Amazona–you actually believe the above statement. You’re a pretty soft target, aren’t you?

  3. js July 10, 2011 / 6:26 pm

    communism…they can try to imitate a free nation…a free economy…free people…but they cant hide the communism behind it…because no matter how much they try…the people who they derive thier power from…are not free…and will never stand shoulder to shoulder with free men…they have to cheat, steal and lie just to keep up…but communists will never be the equal to free nations

  4. js July 10, 2011 / 6:27 pm

    barak hussein…and saddam hussein…wonder if there is any relationship somewhere back in ancient history…both of the have fat heads and lousey leadership abilities

  5. Cecil Hill July 10, 2011 / 9:03 pm

    Once again, reality bumps up against ideology. The coming implosion (when it happens) will have nothing to do with communism versus democracy, capitalism versus socialism or any other ism. It will come as a result of a government breaking the laws of nature to include the laws of economics, laws of society, laws of family relations and many, many more.

    IMHO, the reason democracy and capitalism have been successful is because they follow the various rules of nature that guarantee success. It is not about evil versus good per se because I believe if the truth were known, there are more Christians in China than there are in the US (including in the halls of power in Beijing). The difference is that the Christians in China are the “real deals.” It is easy to pretend to be a Christian in the US but there is no pretending in China. Pretending can get one in a lot of trouble if one is not careful.

    Most Westerners do not understand that China has never been a “free” country. The US has a history of around 230 years in her great experiment in self government. It does not look now like it will be successful. There is, in many instances, more freedom in China than in the US of today. China is not a socialist country but her economy resembles very much that of the US with nine distinct economies all acting on their own with localized authorities.

    China and the Chinese have a history of over 4000 years of authoritarian governance. I think one can say that this history proves beyond a doubt that authoritarianism (if there is such a word) works and works well. The people will not revolt against the government if the current economics continue to play out. The Chinese, as a whole, are better off than any time in their long history. This is the concept that most Westerners do not understand. Couple the economic success at the rural level with a huge nationalistic pride in being Chinese and . . . revolution is out of the question.

    I often posed to my students how long it would take China to overtake the US and be the number one country in the world as predicted by the media. The students I had were not stupid and were very much aware of the shortcomings of their government and the reality of the modern world. The majority of my students stated – NEVER. The reason is simple – 700 to 800 million peasants with only around 250 to 300 million middle class.

    Many a student whispered their disgust for the current political system in China. Whispered most did but I became very concerned when a few were extremely vocal in their hatred for the status quo. So concerned that I gently explained to these outspoken students that no one owns their minds but . . . jail or worse should not be an option and they must understand where they are at all times. These students and others like them in the world that I have met convinced me that to be an American has nothing to do with time and space but the human desire for the freedom we were born with and the equality we believed in. Met a lot of Americans who have never been to the US. If only our liberal brethren understood these simple truths.

    China’s infrastructure is a joke and, as an older gentleman who has trouble squatting down, the toilet infrastructure is the worst in the world. I am sure the Chinese have broken lots of laws of nature when nature calls.

    • js July 10, 2011 / 10:01 pm

      gee..go figure…do you consider freedom…or communism…the natural way of mens affairs…so many words you put down…you say so little…you try oh so hard to put communism on the same level as freedom…but history has literaly spit in your face…

      you can pay all the lip service you want to your ego…you didnt affect one iota of what i posted…you just…dug a hole and squatted in it

      • Cecil Hill July 10, 2011 / 10:25 pm

        Freedom is when people make their own choices and until the establishment of the US that only meant at best personal level choices on a daily basis and not governing choices. Hello, what is so difficult to understand about that? Communism! Ha, the only communism that exists in China is among the ruling elite and it is meaningless. Oligarchy, dictatorship of the few, dynastic rule, Obama’s concept of governance. The issue is economic sustainability and fear of the peasant uprising. What is the difference between getting voted out or getting kicked out by angry constituents? All governments are seeking the same thing – to remain in power.

        The natural affairs of men have always been authoritarianism. What? You are trying to argue with history! Two hundred and thirty five years is but a blink of an instant when viewed over the historical record of human governance. Wake up, silly American! Wake up! You are but an aberration in the history of mankind. Complacency will only exacerbate the obvious. You sit in your expensive houses, drive your nice cars and think, this is the way the world and history is and was. Wake up to your own demise.

        There is no argument that authoritarianism works. Normal people do not desire the ability to make decision for the welfare of the other people in their society. Family decisions are enough for any person to consider at any given moment. Leave the governance of the society who have the power to do it. Insulting me does not change that simple fact. History speaks loudly and clearly against your concepts of self governance. We Americans are proving that truth once again. Duped by a person who is not qualified to lead himself to the bathroom. Duped by people who understand history and know when push comes to shove they will be given their rightful place at the head of the table to govern those who are too lazy or inept to take on the responsibility.

        Now what is it you were complaining about in what I wrote. Communism does not exist and cannot exist anywhere people live. The laws of human nature states this clearly. Dictatorship, yes. Oligarchy, yes. Kingdoms, yes. Dynasties, yes.

        Reply, reply. Did I accidently reply to what you wrote? Relax and no need for insults.

        Did not mean to reply to you but to the concepts provided by Mark. Again, my apologies. I agree with everything that Mark wrote, egotistically and otherwise.

      • js July 11, 2011 / 7:47 am

        makin it up as you go along eh…if ya rub a piece of wood against the grain long enough…you can wear right through it…mind the splinters though…but if the wood is heat treated and prepared…if you rub the wood with the grain…it lasts a thousand times longer…the same with your claim that the state of affairs with human beings as authoritarian…and the natural response of that authoritarianism is wars and conflict…yet..when given freedom from that false figurehead of power…men have been able to greath things…things never accomplished under authoritarian rule…

        creating some illusion that folks wont help one another…is BS…people have been helping each other since time immemorial…and your misrepresentation of that fact shows how clueless you really are….and demonstrated the mentality of the socialists…the communists backbone…and that…in about all ya got…illusions of grandeur…and maybe a tad bit of the bipolar thing…

        Communism exists…its very real…and just because you got your lips flappin in denial wont change that…

  6. Cecil Hill July 10, 2011 / 10:54 pm

    And before anyone wants to accuse me of comparing freedom with communism because of what I wrote, I believe in American exceptionalism because it is an aberration of history. Laws of economy work best when people keep for the fruits of their labor, making them work harder for more fruits. Socialism has never been successful because it demands that people work for the powers that be. Successful dictatorships, dynasties or oligarchies succeed because they allow this law to function. Currently this law is in effect in China with small businesses prospering all across China.

    IMHO, most people are not interested in having the power to govern others. They tend to only care about their own life as it is that day. Would this then be another law of nature? I don’t know but it is a valid question. I, for one, like the ability to choose who will govern me.

    China will implode. Illusions, lies and manipulation of the economic books guarantee this. The question for me, what will be the direction and results of this implosion. In the history of the world, China has been the number one country economically for most of that time. Whatever happens will affect everyone on the planet.

    • neocon1 July 11, 2011 / 3:09 am

      cecildownhill

      …you just…dug a hole and squatted in it

      and it stinks
      what absolute BS

      • Cecil Hill July 11, 2011 / 3:43 am

        Liberals love to insult rather than carry on a reasoned discussion. Intellectually prove me wrong or continue with your snarky little childish insults.

        I await your brilliant expertise on China and how I am wrong.

      • js July 11, 2011 / 7:49 am

        what are you talkin about little boy…you inject lies into a debate and expect us to coddle you…get bent…

  7. Cecil Hill July 11, 2011 / 9:24 am

    What lies? Liberals always yell lie but never point out the lies. Gun and run all you want. I do not ask to be coddled but do expect reasoned discussion rather than typically liberal insults. Gun and run or . . . if you have man enough point out the lies with proof that I am lying. Tell us about your time in China and how you came to a different opinion that what I wrote, son. I know, you shopped at Walmart so you figure you are an expert on the Chinese economy (I think that is what my liberal brother once told me).

    Where is your brilliant expertise to show that what I wrote was lies. Come on, son. I await your brilliance. Gun and run, liberal.

  8. Cecil Hill July 11, 2011 / 9:32 am

    Communism does not exist. Ask the Chinese government. They call their system socialism with Chinese characteristics. Communism as you call it is nothing more than rule by the powerful elites that we have seen throughout history. Tin pot dictators using the word “communism” still are just tin pot dictators.

    Duhhhhh, I guess one can call the monarchies in Europe – communism as well or maybe you see some great difference between rule by powerful elites and rule by powerful elites. You can call a dog a cat all you want but it will still be a cat. You should do a little bit more research on what Marx and the rest of the Frankfurt School meant when they talked about communism. All the “communists” you see running around are just dictators and clients of these dictators. It is a joke but they fooled you, didn’t they JS.

    Opinions are not lies. This is mine. Gun and run, liberal, I love it.

    • neocn1 July 11, 2011 / 6:05 pm

      cecildownhill

      F china
      marxism = socialism = communism.
      I guess Mao was just a “progressive”? WTF

      The People’s Republic of China (PRC), commonly known as Mainland China or simply China, is the most populous state in the world, with over 1.3 billion citizens. Located in East Asia,

      it is a single-party state governed by the Communist Party of China (CPC)

      .[11] The PRC exercises jurisdiction over 22 provinces, five autonomous regions, four directly administered municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two highly autonomous[12] special administrative regions (SARs) – Hong Kong and Macau. Its capital city is Beijing.[13]

      According to CIA World Factbook, China’s government is still a Communist State

      According to CIA World Factbook, China’s government is still considered a Communist State. However the source does note some economic changes since the 1970s (see below). A country’s economic policy is only one part of it’s government, so just because economic policies are changing doesn’t necessarily mean the system of government has changed. See below for CIA World Fact Book’s discussion of
      China’s economic policy:

      You may live in china but you dont know SHIITE about it. BOY!!

      • Cecil Hill July 12, 2011 / 10:14 pm

        According to CIA World Factbook! Well, gosh then you have won the debate. What can I say?

        BTW did you happen to read in the CIA World Factbook the definition of communism.

        Communist – a system of government in which the state plans and controls the economy and a single – often authoritarian – party holds power; state controls are imposed with the elimination of private ownership of property or capital while claiming to make progress toward a higher social order in which all goods are equally shared by the people (i.e., a classless society).

        A few questions for you:

        Does China have an economy planned and controlled by the single authoritarian party?

        Are the citizens of China and foreigner allowed to own property and capital in this communist state of China?

        Are people involved in any capitalist ventures without the supervision or the control of the central government?

        Are goods and services equally shared among the people of China with the government in charge of who gets what?

        Are their impositions on a citizen in China on owning property or capital?

        Just because you claim to be a liberal Democrat does not make you a person who believes in democracy. Liberals, though, will go about proving something they strongly believe in by selective research, providing only the “facts” they agree with and omitting anything that disproves their strongly held beliefs. Yeh, liberals are like that.

        You have a nice day and try to figure out how the CIA Worldbook could possibly be contradicting itself and still be proof of anything other than your gullibility.

        China is a “run-of-mill” dictatorship run by a powerful elite. It is as corrupt as all such socialist endeavors where this powerful elite remain in power by insuring enough of its citizens are kept to a certain degree of happiness. Happens all the time. Communist it is anot..

        Congratulations on your debate victory and make sure you keep that head of yours stuck deeply in that liberal sand where you live.

        Again, have a nice day.

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