As the author of this article, I need to report a misstatement. The rate of inflation in China (according to official statistics) is running at about 6 per cent year over year, and not 6 per cent per month as the article states. Some commodities (pork, for example) are experiencing monthly price rises of about 3-4 per cent, and food prices generally have been increasing at a rate of about 1 per cent per month, but overall inflation is not that high. While official Chinese statistics probably understate the rate of inflation, a figure of 6 per cent per month is certainly too high. When researching this particular point, I simply misread the sources, and when I rechecked them (for it occurred to me that 6 per cent per month is a very high rate indeed) I misread them yet again. My apologies.
Nice piece, Jon. Greed, of course, is pretty much at the root of it all.
From around the beginning of the 20th Century, the American financial Model has dominated the world, China apart that is, and surprisingly perhaps Iran! Is it a coincidence that since the revolution in 1978, when the USA ended economic and diplomatic ties (and froze $11 billion of Iranian assets), and more recently imposed tighter banking sanctions, which had the effect of “protecting” Iran from the world banking crisis, Iran has actually prospered! increased GDP to a position of being 18th in the world (based on PPP). A detailed thesis or interpretation of the nuances of the worlds financial minutiae is all well and good (and quite sound) but the bottom line is; the USA inspired debt financing system (supported by world politicians) is the root cause of all our financial woes Payback time has arrived, China must think all her birthdays have come at once!.