Asian economies

Importing pessimism

Memories of 2008 are influencing Asia’s policymakers

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Readers' comments



Carlito Brigante

"Policymakers in the region still fret about a repeat
of the autumn of 2008,…"

…Why not? That's the way it is. China's authorities
are not only, well, shrewd, but prescient. They are
at the helm of the world economy in the first place.
They do know exactly what's going on in the world.
A lot more informative than, say, this newspaper is.

China's CPI hit, alas, 4.4% in October. That, in Chi-
nese, connotes something. To make matters worse,
it's a double whammy: 4 and 4. Just awesome. Still,
that, perhaps, implies that the country does not mas-
sage its stats (any more). Nobody wants to boast of
his country's being in dire by fabricating its stats. Or,
the other way around? The country might have deliv-
ered a caveat for the world by selecting the numbers:
4.4. Well, don't worry about a superstition so much.

As the authorities fret, the world might be back in
2008. Sure, some time after the Beijing Olympics.
Believe that the authorities know better than to re-
peat the same mistake. Stay hot, China. Stay hot,
tinkering with the yuan, interest rates, and combat-
ting hot money. It's time to brace for inconvenient
truths in the West.

As we learned it two years ago, no country is an is-
land. This newspaper might say that a slowdown is
good for China's overheating economy. That's right,
only if impending woes were not that ugly. So stay
hot, China. Stay hot.

Otherwise, the country will end up facing up to the
double whammy: 4.4. A superstition will haunt the
country like a curse.

Richard Michael Abraham

Texas Size Meteorite Races Towards Earth - Futures Edge Higher

The players are betting with each other and the sole object of this game is to get the stock market to rise despite the fundamentals or economic realities.

Richard Michael Abraham, Founder
The REDI Foundation


China's threat of inflation is the most serious threat of stability with which the country is currently facing. China must deal with this threat urgently because if it allows inflation to get out of control, especially when dealing with food prices, people will be restless and the stability of the regime is at stake.

I have recently written an interesting article about inflation in China in my blog:

I invite everyone to read and to comment

Thank you!


China has pursued policies that encourage inflation. It is no surprise that inflation has raised its ugly head.

To head off inflation the Chinese must make some tough decisions and there are no easy answers.



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