ACALAHA BLOG

August 7, 2009

Inflation in China Now ???

Filed under: Uncategorized — DavidCaploePhD @ 5:37 pm

The New York Times has an interesting story on the role of state-directed lending in China …

Many economists now worry that too much of China’s growth was fueled by aggressive, state-directed lending that could eventually result in a soaring number of bad loans and mounting government debt.

Again, while inflation remains a theoretical possibility, people are MUCH too concerned about it, given the generally DEFLATIONARY dynamics currently at play …

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