Monday, February 25, 2008

Pitchforks and torches in China

The thinking among a number of contraaaaarians (said like a sheep) out there is increasingly turning to China starting to maybe think about considering mulling over possibly relaxing some of its tight money policies. And maybe lifting some of those price controls too, since there's hoarding (Malaysian cooking oil style) and the supply is being choked off, exacerbating shortages etc.

Well, the PBOC doesn't seem to think so, according to CNBC.

For what it's worth, I think the pain felt by (second) property owners is bearable - for the government. Even the pain felt by manufacturers/exporters having a hard time (as long as it doesn't lead to mass layoffs.) What is NOT bearable is millions of starving peasants taking to the streets wielding pitchforks and torches to protest food shortages, inflation and profiteers...

(I would add a link to a vidclip from Frankenstein at this point, but can't find one - so this will have to do. Wrong continent, race, era, rationale etc, but you get the idea.)

Inflation is more important. So, tighter for longer, I think.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

------------------------- Disclaimer -------------------------

Information and analysis on this site is provided for informational purposes or entertainment only. Nothing herein should be interpreted as personalized investment advice. Under no circumstances does this information represent a recommendation to buy, sell or hold any security. None of the information on this site is guaranteed to be correct, and anything written here should be considered subject to independent verification. You, and you alone, are solely responsible for any investment decisions you make.
Good luck!
Hedge Thing