By John Richardson SOME PEOPLE are panicking about global inflation. But I believe that much of the upward pressures on producer and consumer prices are temporary as they are the result of supply chain disruptions which will eventually disappear. I also believe that demographics in the West and China represent long-term deflationary pressures that are […]
Asian Chemical Connections
China Drives Down Yuan To Protect Jobs
By John Richardson WE first warned in December 2011 that as China’s economic reforms accelerated, Yuan depreciation was a strong possibility. And then in May of last year, we picked up the theme again by again suggesting that as growth in China slowed, Beijing would attempt to support the economy through boosting exports via a […]
“The Worse Things Get…..”
Chart sourced from: http://www.financialsense.com/ By John Richardson “THE worse things get the better they are,” continues to be the mantra in financial and commodity markets these days. For example, China’s inflation slowed to 1.8 percent in July compared with 2.2 percent in June. This is likely to spur expectations of more economic stimulus. The […]
China’s Unreliable GDP Data
By John Richardson THE economic slowdown throughout Asia became more apparent last week with the release of disappointing data, prompting interest rate cuts in China, Vietnam and South Korea. China’s key polyethylene (PE) market responded as trading volumes fell and sentiment weakened for the week ending 13 July, according to ICIS. Market participants, however, expressed […]
China Politics
In the last of our series of blog posts on some of the major challenges facing China’s economy over the next 12-18 months, we look at politics. By John Richardson THE outcome of the battle over China’s economic direction is, of course, of crucial importance to the world economy. It would be comforting […]
China Deflation
The second of our series of blog posts on China’s economic challenges over the next 12-18 months focuses on deflation. By John Richardson DEFLATION has now become a major concern for the Chinese economy following the release of official data earlier this week that showed a 2.1 percent decline in producer prices in June […]
China indicates monetary tightening
Confused Direction Source of picture: China Daily A TIGHTER monetary policy is being evaluated by China’s State Council, one of the country’s most-powerful legislative bodies, according to numerous media reports – including this one from Reuters. And the chairman of China’s sixth-biggest lender was quoted in the Financial Times today as saying that […]
China’s Renewed Deflation Threat
“THIS IS RIDICULOUS. I WAS SITTING AROUND UNSOLD FOR MONTHS AND THEN WAS FORCED TO JOIN A SANTA FLEET-HIRE SCHEME. HOW HUMILIATING” Source of picture: www.diytrade.com BEWARE the prophets of recovery in exports of Chinese manufactured goods during the current Christmas buying season. Labour markets in the key export-processing provinces, such as Guangdong, are reported […]
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