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Warning Signs From China

Wednesday, March 9, 2011, 9:36 AM
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The economic miracle of China may be about to undergo a crash landing. The potential for social unrest to spread within and across China notwithstanding, China is trying to delicately nip an inflationary surge in the bud, but risks crashing its housing market in the process.

There are signs that it may have already done so.

High inflation is a sure-fire way to ignite the poorer classes of people, with which China remains generously endowed. So China is actively talking about and targeting inflation via its monetary policies:

 

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