Do any of you believe him?
Well, *I* do. China, after all, is like the U.S. in that it measures inflation via a formula that the government controls and adjusts as necessary. If the Chinese government says that inflation is licked, then by God it's licked!
But prices are climbing at runaway rates and will continue to do so - unless the government decides to regulate THAT as well . . . in which case things simply won't be available for purchase anymore.
That's how it works. For every Government action, there's an equal and opposite REACTION. This is why I'm opposed to so many of the supposedly "beneficial" actions of government. It's never the GOVERNMENT's money that's being given away or spent, after all. Government doesn't produce anything. It doesn't have any money of its own. The money must therefore come from someone else - someone who is forced to give up his or her property at the point of a gun.
Nothing good comes of that.
June 24, 2011, 3:31 a.m. EDT
China premier: We have contained inflation
By Chris Oliver, MarketWatch
HONG KONG (MarketWatch) — Chinese Premier Wen Jiabao said Friday efforts to curb inflation have worked, with price gains now back within a controllable range, according to editorial by the Chinese leader published Friday in the Financial Times.
“China has made capping price rises the priority of macroeconomic regulation and introduced a host of targeted policies. These have worked,” Wen said in the commentary.
“We are confident price rises will be firmly under control this year,” Wen said.
He said the current situation follows increases in banks’ required reserve ratios and interest rates, which were hiked 12 times and four times, respectively, since 2010. He also cited reforms to the yuan’s exchange rate in June 2010, which have so far led to a 5.3% appreciation against the U.S. dollar.
Full story: http://www.marketwatch.com/story/china-premier-we-have-whipped-inflation-2011-06-24?dist=beforebell
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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