My respect for Greenspan has plummeted since he went from managing the fed to hawking his book.
Will this guy ever shut up... between him and algore and the impeached ex president cliton..it’s the pits
There are other low cost areas that can take over. Greenspan is almost always wrong.
I wonder how much of this so-called "inflation" is really just the result of higher costs associated with more stringent quality control measures in the aftermath of all these product recall stories.
No one is more responsible for any inflation surfacing in our country than Greenspan himself, who sold out to Bill Clinton and began flooding the marketplace with printing press dollars back in the mid-90’s. The trend continues to this day because it’s almost impossible to stop it without an instant, significant hit to the U.S. economy. But whether it’s now, or delayed, the fiddler will be paid, and it won’t be China’s fault when it happens.
This is easy..........stop buying anything made in China. I stopped a long time ago. I pay about $20 per tire more for my vehicles but they are made in the US. I don’t care if it costs me a little more. I’d rather do that than support a communist regime.
Low prices doesn’t mean low inflation. Henry Ford’s introduction of the assembly line, which reduced the price of cars, was NOT a deflationary act, nor was Apple’s price cut on their iphone.
Rising Chinese wages will also make their goods more expensive. As their goods because more expensive, other countries goods, including Americans, will become more competitive. As demand for Chinese goods tapers, so will their increases in wages.
Inflation is only a result of excess money. It is often reflected in prices, but changes in prices due to changes in supply & demand do not effect inflation.
Greenspan is a lot like Clinton. . . you just wish they would go awy and STFU!
Way to go, US "captains of industry".
More Pimpco BS.
Other countries are quite happy to take formerly Chinese contracts at a lower cost. The Chinese are going to be yelling about it too as it happens. Lotsa threats.
There will always be another “Slave State” to turn to.
Low cost imports from china?
How about good quality not hazardous imports from china instead of the crap the little commies send us now.
This happened to countries like Korea and Taiwan and to cities like Hong Kong and Singapore. Labor intensive industries moved in, and later moved out. Now those countries/cities are into high tech or services. This is nothing new. The only thing that is new is the scale that is China.
The test will be whether China can stay competitive as their wages rise. That is, will they be able to replace some of those lost industries (like textiles) with those that pay higher wages like autos. I'm confident they will and will continue to be a major exporter.
Looks like Greenspan is doing everything in his power to push this baby over the cliff. He prints money by the boatload during his reign as the Fed chief, allows banks to loan money to anyone with a pulse, promotes multinational globalism as a good thing as far as industry fleeing to cheap labor countries (watch out China, Africa looks pretty cheap compared to you), retires, and then starts shouting from the rooftops that it is all going to implode.
The downside is that American’s are whacked out in debt (including our government), rely on cheap imports to support their lifestyles, have eroded our industrial base and basically cycle cash through our system to keep it moving, and now get to watch our currency plunge to the point where we are going to get whacked by expensive goods in the near future. If this stack of cards does come tumbling down, what are we going to do? Print even more money? Rebuild our industrial base? What a headache, on top of that, we have the huge retirement of the Boomers also coming down the pipeline to pay for in the near future. It just seems inevitable that we are heading for a financial reset of some magnitude.
The Chinese, the US Fed, indeed **every single central bank in the world** all create money out of thin air, which is the very definition of “inflation”, for by printing money (or creating electronic currency units), and using it to purchase assets and buy services, it is counterfeiting private wealth.
The Chinese in particular have been running a type of fascist economy. Government collusion with the banks gives banks the clearance to “loan” money to business enterprises that enjoy political favor, some of which like the PLA and NORINCO are really government-owned enterprises. Many of these enterprises find they cannot repay the loans or service their debt, so instead of forcing bankruptcy or asset recovery, the bank “lends” more money to cover the interest or approves rolling the note through another term.
The net effect of this is simple: lending money that never has to be repaid is identical to printing money. All this money is convertible to US Dollars, but also to Euros, Yen, etc.
If China suddenly decides to get control of bank lending, it will throw the brakes on the Chinese economic expansion, as well as the high rate of inflation that the flood of money is sure to cause in the near future. When coupled with rising wages and exchange rate adjustments, this will cause the price of Chinese goods being sold in the US to rise.
Yesterday I was in a name-brand factory outlet store and observed that all the shirts on display in the front were made in Vietnam. On the other hand, a Silicon Valley high-tech CEO told me last year that he is scaling back his engineering activities in India because the wage advantage is no longer enough to compensate for the hassle-factor.
I wish Freepers would stop killing the messenger and instead try to learn somthing.
Make that USA imports inflation from China.
Not if you made your livelihood as a American manufacturer.