"I have a mind like a steel... uh... thingy." Patrick Logan's weblog.

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Sunday, October 17, 2004

I am not an economist...

...so this could either concern me or lull me to sleep...

The Chinese currency is currently overheated, with inflation there approaching double-digit levels and threatening to lead to economic collapse. Prevailing view is that if China doesn't immediately revalue its currency upwards by 20-25% (so much for the benefits of offshoring!), it will suffer a hard correction and severe recession. The consequences of that will be a sharp, inflationary increase in the cost of Chinese goods, and great difficulties for the many, many American companies that are now utterly dependent on cheap Chinese goods for their survival. Thanks, Wal-Mart!

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About Me

Portland, Oregon, United States
I'm usually writing from my favorite location on the planet, the pacific northwest of the u.s. I write for myself only and unless otherwise specified my posts here should not be taken as representing an official position of my employer. Contact me at my gee mail account, username patrickdlogan.