Inflation? What inflation

By Econ70 | 08/29/2011

Researchers at the Federal Reserve Bank of San Francisco find that 2.7% of consumer spending went to Chinese made items. Moreover, for every $1 spent on Chinese made goods, fully 55 cents goes to US businesses for services like shipping, marketing, sales and advertising. So, even if inflation in China heats up, US consumers are…

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Chinese Trade Deficit!

By Econ70 | 04/11/2011

Yesterday China reported that imports ($400bn) had exceeded exports ($399bn) in Q1 ‘11. This tiny deficit, China’s first in 7 years is an encouraging development for the world economy. It comes after 2 successive years of import growth outpacing exports. Hopefully this trend will continue. If so China will stop printing Yuan (to keep the…

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