More Inflation

[Arab Nights (imported)]

I have been seeing lately a string of articles about the Chinese economy. It seems the ocean of Chinese willing to work for very little is about to dry up. The one child rule will this decade begin to make the Chinese workforce on average measurably older and there will be fewer of them. In fact, so many fewer that the prices of Chinese made good have already started to rise. Supposedly there is not another place in the world with anywhere near enough young, poor folks to replace them on that scale for mnufacturing for the world economy.

The point that has been made for a couple of years is that commodities will get more expensive because there are a lot more middle class folks many countries and each wants their car, gasoline, better food and so on and they have the money to buy them.

Without the flood of cheap stuff and ocean of money for easy credit, it will be a fun ride for Americans used to the good life based on cheap manufacturing in China and credit cards. But there also are articles pointing out that American manufacturing and exports should grow because we will get more price competitive during this decade because other peoples costs are rising faster than ours.