Re: This is the leading edge of the storm , Subprime MELTDOWN

On Fri, 27 Jul 2007 03:35:10 -0700, "ltlee1@xxxxxxxxxxx"
<ltlee1@xxxxxxxxxxx> wrote:

Will there be a world recession? Not likely as China's economy is
still red hot and will keep producing the cheap goods everyone wants.
Perhaps with a meltdown in the US the price of oil and strategic
materials (metals, etc) may drop. We may even get cheaper goods. The
only strategy you need to follow is don't get into debt. The interest
rates will be very high.

One exit from the current mess is higher farm product price. China
would then be able to pursue a strong yuan policy which will translate China's
economic growth into global economic growth.


At this point of time food in China is still very cheap and affordable
even to the poorest person. Half a Peking Duck at a famous restaurant
costs less than 100 Yuan. A steam boat meal in a upscale restaurant
is 40 yuan. A roadside stick of meat BBQed on a bamboo skewer is one
Yuan a stick. I wanted to try one or two, ordered 10 Yuan's worth,
got a handful instead. They were delicious. But I should not eat
roadside food.

Higher food prices in China is going to cause inflation. For the same
reason bottled propane for home use is at subsidized prices. Any
movement upward in prices of basic necessities - food, water, fuel,
housing, public transportation - is a very fearsome problem. I don't
know the answer but any movement in cost of living prices has to be
very carefully managed and slow. Not even a meltdown in the US
economy must be allowed to "panic" the Chinese economy.
.

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  • Re: This is the leading edge of the storm , Subprime MELTDOWN
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