At the end of the day, it still comes down to lax monetary policy, China and India would not have registered enormous economic growth if it wasn't for the ez paper dollar. We are having a steroid-enhanced global capitalism. Paper money is the steroid. Once the effect of steroid is gone, it's "payback" time.
Quote:
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China's inflation surged to a nearly 12-year high in February, the government said Tuesday, squeezing exporters and adding to the threat of unrest ahead of the Beijing Olympics.The 8.7 percent rise in the consumer price index over February 2007 was driven by a 23.3 percent jump in food costs, the National Bureau of Statistics reported. Price rises for some individual goods were even more dramatic: Pork was up 63.4 percent and vegetables 46 percent.
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China’s inflation jumps to nearly 12-year high - World business - MSNBC.com
Another point is if US and the world was put under strict monetary constraint XX years ago, we would have ( or are forced to) utilized precious resources more efficiently and much earlier ( electric car, air car,solar, nuclear energy and etc ). and there would no Iraq war for paperdollar-oil. That's my guess.
