In economic terms, the prices of Chinese exports will probably
fall, as overextended businesses compete to justify their capital
investments and recoup their losses. American businesses will find
it harder to compete with Chinese companies, and there will be
deflationary pressures in both
countries.And even if the Chinese are selling more at lower prices,
they may be taking in less money over all, so they may have less to
lend to the United States government.
Click on link above and read the whole story.
BB
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possible yen devaluation and deflation talk
Posted by ucbarryk on 28th of Nov 2009 at 06:43 pm
http://www.economist.com/businessfinance/displaystory.cfm?story_id=14996669
Japan's concern about devaluing the yen is deflation for them and other countries
More talk of deflation...China
Posted by bboylan on 29th of Nov 2009 at 08:18 am
http://www.nytimes.com/2009/11/29/business/economy/29view.html?ref=business
In economic terms, the prices of Chinese exports will probably fall, as overextended businesses compete to justify their capital investments and recoup their losses. American businesses will find it harder to compete with Chinese companies, and there will be deflationary pressures in both countries. And even if the Chinese are selling more at lower prices, they may be taking in less money over all, so they may have less to lend to the United States government.
Click on link above and read the whole story.
BB