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There's no recession, and certainly no depression. It's just wishful thinking by the Anti-American peanut gallery. I just got back from Hong Kong and things are fine here. If you want to see a depression, do some research on America in '29 or SE Asia in '97. That's a depression. Nowadays, according to the idiots, if people stop buying iphones, the country's in a recession. Give me a break. |
Commodity prices are driven mostly by speculation. There's oil out there as findings in Brazil and North Dakota have shown. It's just a matter of time before this bubble pops. The dollar has strengthened 1% this month. If it continues its upward trend and the Fed stops cutting rates, we'll see commodity prices slide. Right now, gas is at about $4/gallon in America, which doesn't bother me and most wealthy Americans. Our average annual salary is $44,000, so we can afford higher commodity prices. They pay the equivalent of $6/gallon in Europe and Japan, so I can't complain.
The Chinese have to worry more about higher commodity prices than Americans. Right now the government is keeping prices relatively low by placing a price cap on oil and commodities. In order to do this it has to dip into its bag of foreign currency reserves. How much longer can this continue? China still has about 700 million+ poor peasants in the countryside who can't even afford to buy rice, let alone gas. If you think the Chinese that live in the cities represent China, you're nuts. The average annual salary in China is $3,000. The peasants and workers, who earn very little, are the drivers of China's economy. You should take a 6 hour ride into the countryside and see how the majority of China's population live. China has so many problems right now.
[ Last edited by meiguodiyi at 2008-4-27 07:12 AM ]