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China raises interest rates

"...the state think tank predicts consumer-price inflation will pick up to 5.2%-5.3% in March before peaking in May to June and decelerating in the second half of the year. In addition to commodity inflation, he said, China's price pressures stem from inflows of liquidity on the global recovery, rising house rents and inflation in some industrial products and daily articles."

http://online.wsj.com/article/BT-CO-20110406-700055.html



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China

Their central bank is going to mismanage this imo. They are incapable of independent thought and therefore they will experience stagflation imo. It is really going to be hard on the pensioners and the middle class. At least the peasants have accessible land to pick food off.

China will somewhat offset these problems with increased military spending to stimulate the economy and will sell their hardware to South American countries and African nations.

They will eventually have no choice but to dump US dollars and Euros to feed their stinking country. Perhaps they might also annex North and South Korea.

donvino