inflation or deflation!!?

[svelte]

?…in all other categories including wages…”

Uhh, you wanna bet on that one?

lol, I’m not sure enough to bet on it, I definitely could be wrong.

But with the dollar falling, demand for our goods worldwide should increase. Hopefully that will keep employment levels high enough to offset the job losses in construction and finance. Time will tell.

[Coronita]

Doesn't help that China  keeps pegging the  yuan to the dollar and that companies like Dell keep shifting to components made there.

 

Editorial notes: As if Dell's desktops/laptops weren't already POS's….Dell can now go from  crappy desktops and laptops to even CRAPIER desktop and laptops. Sounds like a winning proposition to me. What now, "Walmart inside" stickers on the laptops?

 

 

 

 Dell to buy $52 bln components from China
Thursday March 20, 10:10 am ET
By Kirby Chien

BEIJING (Reuters) – Dell Inc (NasdaqGS:DELL – News) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (NasdaqGS:CSCO – News) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (NYSE:HPQ – News; HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai — one of the company's largest — and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (NYSE:WMT – News), Carrefour SA (Paris:CARR.PA – News) in Europe and China's GOME Electrical Appliances Holding Ltd (HKSE:0493.HK – News).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Doesn't help that China  keeps pegging the  yuan to the dollar and that companies like Dell keep shifting to components made there.

 

Editorial notes: As if Dell's desktops/laptops weren't already POS's….Dell can now go from  crappy desktops and laptops to even CRAPIER desktop and laptops. Sounds like a winning proposition to me. What now, "Walmart inside" stickers on the laptops?

 

 

 

 Dell to buy $52 bln components from China
Thursday March 20, 10:10 am ET
By Kirby Chien

BEIJING (Reuters) – Dell Inc (NasdaqGS:DELL – News) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (NasdaqGS:CSCO – News) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (NYSE:HPQ – News; HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai — one of the company's largest — and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (NYSE:WMT – News), Carrefour SA (Paris:CARR.PA – News) in Europe and China's GOME Electrical Appliances Holding Ltd (HKSE:0493.HK – News).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Doesn't help that China  keeps pegging the  yuan to the dollar and that companies like Dell keep shifting to components made there.

 

Editorial notes: As if Dell's desktops/laptops weren't already POS's….Dell can now go from  crappy desktops and laptops to even CRAPIER desktop and laptops. Sounds like a winning proposition to me. What now, "Walmart inside" stickers on the laptops?

 

 

 

 Dell to buy $52 bln components from China
Thursday March 20, 10:10 am ET
By Kirby Chien

BEIJING (Reuters) – Dell Inc (NasdaqGS:DELL – News) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (NasdaqGS:CSCO – News) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (NYSE:HPQ – News; HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai — one of the company's largest — and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (NYSE:WMT – News), Carrefour SA (Paris:CARR.PA – News) in Europe and China's GOME Electrical Appliances Holding Ltd (HKSE:0493.HK – News).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Doesn't help that China  keeps pegging the  yuan to the dollar and that companies like Dell keep shifting to components made there.

 

Editorial notes: As if Dell's desktops/laptops weren't already POS's….Dell can now go from  crappy desktops and laptops to even CRAPIER desktop and laptops. Sounds like a winning proposition to me. What now, "Walmart inside" stickers on the laptops?

 

 

 

 Dell to buy $52 bln components from China
Thursday March 20, 10:10 am ET
By Kirby Chien

BEIJING (Reuters) – Dell Inc (NasdaqGS:DELL – News) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (NasdaqGS:CSCO – News) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (NYSE:HPQ – News; HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai — one of the company's largest — and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (NYSE:WMT – News), Carrefour SA (Paris:CARR.PA – News) in Europe and China's GOME Electrical Appliances Holding Ltd (HKSE:0493.HK – News).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Doesn't help that China  keeps pegging the  yuan to the dollar and that companies like Dell keep shifting to components made there.

 

Editorial notes: As if Dell's desktops/laptops weren't already POS's….Dell can now go from  crappy desktops and laptops to even CRAPIER desktop and laptops. Sounds like a winning proposition to me. What now, "Walmart inside" stickers on the laptops?

 

 

 

 Dell to buy $52 bln components from China
Thursday March 20, 10:10 am ET
By Kirby Chien

BEIJING (Reuters) – Dell Inc (NasdaqGS:DELL – News) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.

The world's second-largest personal computer maker, Dell is far from alone in looking to China to reduce manufacturing costs and remain competitive.

Last November, Cisco Systems Inc (NasdaqGS:CSCO – News) said it would almost double its purchasing from Chinese suppliers over five years to $16 billion.

Cisco is the biggest maker of routers, switches and other equipment that make up the Internet.

Hardware makers such as Dell, Cisco and Hewlett-Packard (NYSE:HPQ – News; HP) could be hit hard by a U.S. economic downturn, Dell even more so because it relies on the U.S. for about half of its revenue, a much higher proportion than larger rival HP.

That makes China's role as a customer equally important to Dell, which saw a 54 percent rise in unit sales on the mainland during its last financial quarter.

"China is one of the most dynamic and fastest-growing economies in the world, and we've made significant business and social investments here in the past 10 years," said Michael Dell.

Dell's presence in China includes two manufacturing operations in the south, a product design centre in Shanghai — one of the company's largest — and a sales support centre in the north east for customers in Japan and Korea.

The company lost top market-share spot to HP in 2006 as consumers favored buying notebook PCs in stores, leading it to abandon last year a long-standing direct-only sales model.

It now sells PCs in retailers such as Wal-Mart Stores Inc (NYSE:WMT – News), Carrefour SA (Paris:CARR.PA – News) in Europe and China's GOME Electrical Appliances Holding Ltd (HKSE:0493.HK – News).

Dell was speaking at an event to celebrate 10 years of operations in China.

($=7.06 yuan)

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[stansd]

Apologize if this has been mentioned before, but I remain a bit confused and find this thread fascinating.

It seems like those talking about deflation are referring to asset price deflation wheras the inflationistas are referring to consumer prices. In my mind, there is a good chance of both of these occurring simultaneously-the recession causes asset price deflation while the commodities boom, emerging economy demand, and dollar devaluation cause consumer inflation.

End result is stagflation, deflation (asset), and inflation (consumer prices) simultaneously. End effect is boomers don’t have enough to retire (this is already true, but it gets worse), but those of us in the younger set are better positioned on investments since prices are reasonable, but lose a few notches on standard of living as wages don’t keep up with the prices of the stuff we buy.

Thoughts?

Stan

[Anonymous]

This has been bugging me for a while. I was first a deflationist then turned inflationist. It seems like one problem we have in discussing this is that many deflationists argue about money supply. They treat credit as money and define inflation or deflation as monetary events: expansion or contraction in the money supply.

Inflationists seem to be more fixed on prices. They tend to argue inflation or deflation as a price phenomena. That difference makes meaningful understanding or arguing difficult.

That being said, I tend to agree with pencilneck. We don’t exist in a vacuum. While debt being destroyed causes our money supply to contract, we can still see a drastic increase in prices as the dollar falls and we import goods. Inflation or deflation? Guess it depends on your definition.

My hardest point to swallow about inflation is how does the inflation make it to wages. In the 70s we had unions to push the wages up. We don’t have that now. We have globalization to push them down. For deflation, when I see so many prices rising precipitously, it makes me wonder about that argument.

I tend to agree with the itulip guys that we are headed for inflation. I like their idea that we will try to blow another bubble in alt energy and/or infrastructure. But using methods other than credit.

Just my 2c…

[Anonymous]

This has been bugging me for a while. I was first a deflationist then turned inflationist. It seems like one problem we have in discussing this is that many deflationists argue about money supply. They treat credit as money and define inflation or deflation as monetary events: expansion or contraction in the money supply.

Inflationists seem to be more fixed on prices. They tend to argue inflation or deflation as a price phenomena. That difference makes meaningful understanding or arguing difficult.

That being said, I tend to agree with pencilneck. We don’t exist in a vacuum. While debt being destroyed causes our money supply to contract, we can still see a drastic increase in prices as the dollar falls and we import goods. Inflation or deflation? Guess it depends on your definition.

My hardest point to swallow about inflation is how does the inflation make it to wages. In the 70s we had unions to push the wages up. We don’t have that now. We have globalization to push them down. For deflation, when I see so many prices rising precipitously, it makes me wonder about that argument.

I tend to agree with the itulip guys that we are headed for inflation. I like their idea that we will try to blow another bubble in alt energy and/or infrastructure. But using methods other than credit.

Just my 2c…

[Anonymous]

This has been bugging me for a while. I was first a deflationist then turned inflationist. It seems like one problem we have in discussing this is that many deflationists argue about money supply. They treat credit as money and define inflation or deflation as monetary events: expansion or contraction in the money supply.

Inflationists seem to be more fixed on prices. They tend to argue inflation or deflation as a price phenomena. That difference makes meaningful understanding or arguing difficult.

That being said, I tend to agree with pencilneck. We don’t exist in a vacuum. While debt being destroyed causes our money supply to contract, we can still see a drastic increase in prices as the dollar falls and we import goods. Inflation or deflation? Guess it depends on your definition.

My hardest point to swallow about inflation is how does the inflation make it to wages. In the 70s we had unions to push the wages up. We don’t have that now. We have globalization to push them down. For deflation, when I see so many prices rising precipitously, it makes me wonder about that argument.

I tend to agree with the itulip guys that we are headed for inflation. I like their idea that we will try to blow another bubble in alt energy and/or infrastructure. But using methods other than credit.

Just my 2c…

[Anonymous]

This has been bugging me for a while. I was first a deflationist then turned inflationist. It seems like one problem we have in discussing this is that many deflationists argue about money supply. They treat credit as money and define inflation or deflation as monetary events: expansion or contraction in the money supply.

Inflationists seem to be more fixed on prices. They tend to argue inflation or deflation as a price phenomena. That difference makes meaningful understanding or arguing difficult.

That being said, I tend to agree with pencilneck. We don’t exist in a vacuum. While debt being destroyed causes our money supply to contract, we can still see a drastic increase in prices as the dollar falls and we import goods. Inflation or deflation? Guess it depends on your definition.

My hardest point to swallow about inflation is how does the inflation make it to wages. In the 70s we had unions to push the wages up. We don’t have that now. We have globalization to push them down. For deflation, when I see so many prices rising precipitously, it makes me wonder about that argument.

I tend to agree with the itulip guys that we are headed for inflation. I like their idea that we will try to blow another bubble in alt energy and/or infrastructure. But using methods other than credit.

Just my 2c…

[Author]

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