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Global inflation will eventually form a chain
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If not flock to China's cheap products the global market, the U.S. and Europe should have inflation. But the contrary, Chinese products to maintain the United States and Europe before the crisis long-term high growth and low inflation pattern, until the subprime bubble about to burst have the reversed 2007,2008. At present, China suffer from inflationary pressures, the United States suffer from deflationary pressures. U.S. government and Federal Reserve to huge deficit in the balance sheet and large, I hope out of the tight state, U.S. government budget deficit out of control, the U.S. budget in 2011 was 3.8 trillion, according to the latest forecast Obama administration, fiscal 2010 U.S. budget deficit will reach a record high of 1.56 trillion U.S. dollars. Since the 60s of last century, the economic downturn and the war needs, the U.S. government began to adopt expansionary fiscal policy, deficit financing from the situation as uncollectible. To the late 80s, size of the deficit over 2000 billion U.S. dollars. The mid-90s of last century, was reduced due to the economic prosperity, but rebounded sharply in the new century, in 2004 exceeded 400 billion. The financial crisis, in 2009 the first 9 months of 2008 than the deficit more than doubled. The Fed's balance sheet expanded dramatically, from 9,000 billion to 3 trillion maximum expansion. Expansion did not markedly. From the CPI data, the U.S. is still in a state of deflation. Recent slight rise, the latest Labor Department report showed U.S. November producer price index (PPI) rose by 0.8% qoq, slightly above market expectations for the largest increase since March. This gives the Americans a glimmer of hope, but it is difficult for Bernanke to give up the threat of quantitative easing monetary policy. China is just the opposite and inflationary pressures rising. The global financial crisis, China has a lot of internal debts, such as fixed exchange rates, low labor costs, an extremely liberal environmental policy, pollution emission requirements, coupled with highly creative organization of production efficiency and success of the U.S. dollar collapse excessive flooding could lead to global inflation, and, with the United States formed between the issue of currency, sales of the loop. China and other countries buy U.S. Treasury bonds led to the U.S. bond yields remain at a lower position and let the Fed to continue to grant money has a reason for the low CPI. Currently the currency issued by the Federal Reserve did not go into the real economy, U.S. corporate credit remained at a lower position, but the dollar risk of the global investment market, the global commodity markets gradually return to high. The real estate market crisis, financial crisis, the ratio between oil and gold are destroyed, the price of gold rising, oil price shocks. If the return to normal ratio of the following two conditions must be one or, or gold or oil prices fall, once the high oil prices break through Qianqi, global exposure to the real estate market bubble will be a huge risk, the first is China Real Estate. Recall that before the outbreak of the 1998 financial crisis, oil prices, and it was the heat of the real estate market. Whether hedge funds or the end of Chanos Boshi Mai Wah, are taking the risk of China's real estate bubble in the first place. The Fed is still keeping a large number of issuing currency is changing the pattern of low inflation, a big turning point has come, this change mainly to the appreciation of the RMB was forced to slowly tone. When the appreciation of the renminbi to a certain extent, the U.S. and Europe will be found that they received from the Chinese economy will be less and less dividends, China no longer exporting deflation, but inflation from China received the message. One day, the U.S. and Europe will find their shooting itself in the foot. According to reports, China's exports in November increased by 35%, largely due to price uplift, the current rising inflationary pressures in China, the gradual appreciation of the exchange rate, the factory had to raise wages in response to the rising cost of living on the domestic The debts had also on one by one. After the financial crisis, China's issuance of credit and currency rose sharply, which will in the next few years, inflation in China to face greater challenges, and through bulk purchasing of raw materials and prices slowly rising inflation in some areas of the small and firmly transmitted to the world. At this point, Europe and the U.S. fiscal deficit and balance sheet expansion of the curse began to apparitions, Europe nowhere to pass the crisis, inflation will backfire on the U.S. and European economies. China faces the biggest crisis of asset bubble will show the terrible face, once the world into inflation, China's real estate bubble will not be maintained. Drug addicts are still doing drugs. U.S. Federal Reserve will meet to discuss the evening of 14 Beijing monetary policy in the United States launched the second round of quantitative easing, the U.S. 10-year Treasury yield has been drawn high, was 3.39% opinions, which may allow the Fed chairman for Bonan g crazy, because want to drive down interest rates to encourage quantitative easing lending market phenomenon suddenly disappeared. Under the broad monetary tightening is a temporary phenomenon, into a black hole in the middle, the United States, Japan and other countries in the global currency of one day sounding the inflation alarm, warning the first round of the emerging markets and real estate bubble, the second round is the rise in commodities markets, and ultimately we will find, in a tight table image, the prices of industrial goods from emerging countries rose quietly to form a complete chain of global inflation cycle. There is nothing to long-term from the economic norm, whether the U.S. deficit, China's credit, or global prices. CPI is currently rising in Europe and America hope one day we will tolerate a general increase in CPI to pay.

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