Food for thought

Discussion in 'Economics' started by EMRGLOBAL, Dec 11, 2010.

  1. "The Fed and the US government have of course always lied about real inflation and they have changed formulas to match their desired story. China, on the other hand, is now openly trying to contain inflation that they measure at an annualized rate of over 5% as they announced this week. One wonders why the Chinese don’t just lie about inflation like the US does. In truth, the Chinese recognize that an over-heated economy eventually crashes and that is the scenario they are trying to avoid. The US, on the other hand, has already pushed the plunger of economic destruction and only has one option left - the Zimbabwe option. They are going to try to inflate their way back to prosperity."
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  2. One wonders why the Chinese don’t just lie about inflation like the US does.
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    Probably because China hasn't any unions with "cola" based on inflation numbers, same with SS or whatever entitlements that would be affected by inflation and increased costs.