Wednesday, April 9, 2008

Excellent point from a reader of Slate

Someone wrote in to ask what the renminbi has appreciated 16 percent against this year. Great point! That would be the US dollar.

1 comment:

wellbasically said...

OK, and you said this a bit, but what you're seeing is the US dollar inflating. China's currency is partially pegged to the dollar and is importing some inflation. People are feeling their money losing value.

I'd say however that many of the social changes you mentioned are actually simply a result of inflation. If we see inflation of the US dollar stop against gold for instance, look out for the price increases in China to stop or reverse.