You say Inflation…I say deflation?!

[andymajumder]

I say Stagflation. Due to globalization and availability of cheap educated labor in Asia, job growth will continue to be anemic in US, and even those who do have decent jobs in the private sector will not see any significant increase in their compensation due to outsourcing pressure. Of course the top management in most of the private sector will continue to do great as profits continue grow due to expansion in Asia and latin america. Feds policies will lead to inflation in commodity and energy prices which will creep into food and transportation. So thing will get more expensive while salaries will stagnate. Middle class will continue get hammered, the rich will get richer (specially those with exposure to commodity stocks and top management of MNCs)…disparity between the haves and have nots will continue to grow.

[CA renter]

Pretty much ditto what andymajumder said. It’s going to get ugly for working Americans (and even worse for those who can’t find work).

[CA renter]

Pretty much ditto what andymajumder said. It’s going to get ugly for working Americans (and even worse for those who can’t find work).

[CA renter]

Pretty much ditto what andymajumder said. It’s going to get ugly for working Americans (and even worse for those who can’t find work).

[CA renter]

Pretty much ditto what andymajumder said. It’s going to get ugly for working Americans (and even worse for those who can’t find work).

[CA renter]

Pretty much ditto what andymajumder said. It’s going to get ugly for working Americans (and even worse for those who can’t find work).

[Arraya]

Fed policies may or may not lead to inflation, but a billion new eastern consumers trying to reach western consumption ratios will strain the energy system enough to raise the price of necessities, if western consumption maintains. But it really has nothing to do with increasing the money supply or any policy(except maybe globalization). It’s more an effect of adding tremendous demand to a commodity system that has never been there before.

Chinese per capita oil consumption is about a twelfth of what US per capita consumption is and it’s dramatically increased in the last decade. There is virtually zero chance they can reach US per capita levels without dramatically dislocating western economies.

China, aware of this situation, have been quietly arranging long term bilateral supply contracts directly with producers, thereby, going around and taking production off the market.

Western powers, rely on their own perceived ability to outbid the competition.

[Arraya]

Fed policies may or may not lead to inflation, but a billion new eastern consumers trying to reach western consumption ratios will strain the energy system enough to raise the price of necessities, if western consumption maintains. But it really has nothing to do with increasing the money supply or any policy(except maybe globalization). It’s more an effect of adding tremendous demand to a commodity system that has never been there before.

Chinese per capita oil consumption is about a twelfth of what US per capita consumption is and it’s dramatically increased in the last decade. There is virtually zero chance they can reach US per capita levels without dramatically dislocating western economies.

China, aware of this situation, have been quietly arranging long term bilateral supply contracts directly with producers, thereby, going around and taking production off the market.

Western powers, rely on their own perceived ability to outbid the competition.

[Arraya]

Fed policies may or may not lead to inflation, but a billion new eastern consumers trying to reach western consumption ratios will strain the energy system enough to raise the price of necessities, if western consumption maintains. But it really has nothing to do with increasing the money supply or any policy(except maybe globalization). It’s more an effect of adding tremendous demand to a commodity system that has never been there before.

Chinese per capita oil consumption is about a twelfth of what US per capita consumption is and it’s dramatically increased in the last decade. There is virtually zero chance they can reach US per capita levels without dramatically dislocating western economies.

China, aware of this situation, have been quietly arranging long term bilateral supply contracts directly with producers, thereby, going around and taking production off the market.

Western powers, rely on their own perceived ability to outbid the competition.

[Arraya]

Fed policies may or may not lead to inflation, but a billion new eastern consumers trying to reach western consumption ratios will strain the energy system enough to raise the price of necessities, if western consumption maintains. But it really has nothing to do with increasing the money supply or any policy(except maybe globalization). It’s more an effect of adding tremendous demand to a commodity system that has never been there before.

Chinese per capita oil consumption is about a twelfth of what US per capita consumption is and it’s dramatically increased in the last decade. There is virtually zero chance they can reach US per capita levels without dramatically dislocating western economies.

China, aware of this situation, have been quietly arranging long term bilateral supply contracts directly with producers, thereby, going around and taking production off the market.

Western powers, rely on their own perceived ability to outbid the competition.

[Arraya]

Fed policies may or may not lead to inflation, but a billion new eastern consumers trying to reach western consumption ratios will strain the energy system enough to raise the price of necessities, if western consumption maintains. But it really has nothing to do with increasing the money supply or any policy(except maybe globalization). It’s more an effect of adding tremendous demand to a commodity system that has never been there before.

Chinese per capita oil consumption is about a twelfth of what US per capita consumption is and it’s dramatically increased in the last decade. There is virtually zero chance they can reach US per capita levels without dramatically dislocating western economies.

China, aware of this situation, have been quietly arranging long term bilateral supply contracts directly with producers, thereby, going around and taking production off the market.

Western powers, rely on their own perceived ability to outbid the competition.

[Bubblesitter]

China sold more cars last year than the US. It just surpassed Japan as the second largest economy. After dozens of trips out to China starting nearly 15 years ago, I’m still amazed by China’s growth and very rapid change. 15 years ago vast streams of bicycles on the roads ….now huge traffic jams on jiangoumin avenue (wide 15 or so lane road in front of Tiannamen square, same road where man stood in front of tank). More Audis, BMWs, Shanghai GM Buicks you can shake a stick at. Btw, GM sold more cars in China last year than they did in the States. China still has 600 million dirt poor peasants, all want to be like western consumers.
These are some reasons I’m betting on longer term inflation, especially in energy oil and other commodities. It will be interesting ride for China, they are currently going thru ttheir own property bubble. Shanghai now more expensive than NYC. Wonder what impact of property crash will be, if it occurs.

Bubblesitter

[Bubblesitter]

China sold more cars last year than the US. It just surpassed Japan as the second largest economy. After dozens of trips out to China starting nearly 15 years ago, I’m still amazed by China’s growth and very rapid change. 15 years ago vast streams of bicycles on the roads ….now huge traffic jams on jiangoumin avenue (wide 15 or so lane road in front of Tiannamen square, same road where man stood in front of tank). More Audis, BMWs, Shanghai GM Buicks you can shake a stick at. Btw, GM sold more cars in China last year than they did in the States. China still has 600 million dirt poor peasants, all want to be like western consumers.
These are some reasons I’m betting on longer term inflation, especially in energy oil and other commodities. It will be interesting ride for China, they are currently going thru ttheir own property bubble. Shanghai now more expensive than NYC. Wonder what impact of property crash will be, if it occurs.

Bubblesitter

[Bubblesitter]

China sold more cars last year than the US. It just surpassed Japan as the second largest economy. After dozens of trips out to China starting nearly 15 years ago, I’m still amazed by China’s growth and very rapid change. 15 years ago vast streams of bicycles on the roads ….now huge traffic jams on jiangoumin avenue (wide 15 or so lane road in front of Tiannamen square, same road where man stood in front of tank). More Audis, BMWs, Shanghai GM Buicks you can shake a stick at. Btw, GM sold more cars in China last year than they did in the States. China still has 600 million dirt poor peasants, all want to be like western consumers.
These are some reasons I’m betting on longer term inflation, especially in energy oil and other commodities. It will be interesting ride for China, they are currently going thru ttheir own property bubble. Shanghai now more expensive than NYC. Wonder what impact of property crash will be, if it occurs.

Bubblesitter

[Bubblesitter]

China sold more cars last year than the US. It just surpassed Japan as the second largest economy. After dozens of trips out to China starting nearly 15 years ago, I’m still amazed by China’s growth and very rapid change. 15 years ago vast streams of bicycles on the roads ….now huge traffic jams on jiangoumin avenue (wide 15 or so lane road in front of Tiannamen square, same road where man stood in front of tank). More Audis, BMWs, Shanghai GM Buicks you can shake a stick at. Btw, GM sold more cars in China last year than they did in the States. China still has 600 million dirt poor peasants, all want to be like western consumers.
These are some reasons I’m betting on longer term inflation, especially in energy oil and other commodities. It will be interesting ride for China, they are currently going thru ttheir own property bubble. Shanghai now more expensive than NYC. Wonder what impact of property crash will be, if it occurs.

Bubblesitter

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