huangthomas

China Stockpiles TIPS, Anticipates Commodities Bubble

In 70's, the house cost was replaced by rent or rent equivalent of your own house in calculating cost of housing. During the last housing bubble, house price rose and the rent fell because renters were buying into the bubble. If you don't like the inflation figures you don't like, you can always manipulate the way it is calculated.

Most people feel that the government's inflation figure of 3% is too low. We can feel the price increases close to 8%. The government argue that 5% are due to "quality improvement" of goods and services and not due to inflation. Ha! what a "quality improvement" of our daily living.

China Stockpiles TIPS, Anticipates Commodities Bubble

China didn't raise any questions regarding investment in treasuries until US started "quantitative easing" (printing money). This is a prelude to inflation. China intends to protect their future investment in treasuries against inflation and ask for inflation-protected treasuries. It is so simple. I must admit I can't stand to finish reading the post. Make it simple, s.........