[link|http://biz.yahoo.com/rf/040428/markets_usa_1.html|China Wants To Slow Economy]
Prices of precious metals like gold and silver, as well as industrial metals like aluminum and copper plunged along with soybeans and cotton, after China's Premier Wen Jiabao told Reuters the country may take forceful action to slow down its economy. A government plan to rein in inflation probably would limit money available for steel, cement and aluminum projects.
We need inflation in China's economy to elevate wages relative to the U.S. We need a strong Yuan and a weak dollar to help drive exports. We've got to start working on the balance of trade. We need tariffs and protectionism, or to simply require balance of trade between the U.S. and other countries.
This is an overt attempt by the Chinese government to keep their people down, slow their economy down, and drive the dollar higher, so they can justify not buying American. And keep their population in low wages.
They NEED inflation to raise the wages of their workers.
In a capital economy, inflation is bad. In a labor economy, inflation is good.
Glen Austin