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Inflation Bell Tolling for China?


Out of Control Inflation Leaves Chinese Regime With A Few Options ... Chinese authorities have finally admitted that inflation is out of control. No matter how Beijing plays with the Consumer Price Index (CPI) by using rent instead of the purchase price when calculating housing costs, the rapidly rising prices migrant workers must pay for meals and the daily increasing food prices with which housewives must contend make it hard to cover up any more. Deutsche Welle's recent report on the political impact of China's inflation tells us why the Chinese Communist Party (CCP) admitted the existence of runaway inflation. Although it wasn't a secret, the warning by officials of the National Development and Reform Committee to prepare for higher inflation is very rare. It is also uncommon that here would be such differing estimates of the inflation rate, ranging from 5 percent to 15 percent, between the National Bureau of Statistics, the National Development and Reform Committee and the banking industry. For the past decade, China's broad money supply (M2) has increased 18 percent annually, nearly twice the official GDP growth rate. Considering the poor quality of the official GDP data, M2's relative growth rate is even more alarming. – Epoch Times

Dominant Social Theme: Is it time for a war yet?

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