This is a story I have been meaning to get to for over a week. I've been lazy. But with the "China's Rise America's Fall" stories being so prevalent these days I thought some counter balance was in order. And what are the riots about? Inflation and wages.
Yesterday we reported news that has so far received almost no media exposure, namely that thousands of striking truck drivers had poured into Shanghai's Waigaoqiao zone, one of the city's busiest container ports, protesting over "rising fuel prices and low wages." Today, via Reuters, we learn that this situation has escalated materially, and progressed into violence: "A two-day strike over rising fuel prices turned violent in Shanghai on Thursday as thousands of truck drivers clashed with police, drivers said, in the latest example of simmering discontent over inflation. About 2,000 truck drivers battled baton-wielding police at an intersection near Waigaoqiao port, Shanghai's biggest, two drivers who were at the protest told Reuters. The drivers, who blocked roads with their trucks, had stopped work on Wednesday demanding the government do something about rising fuel costs, workers said." And while we have violent uprisings over austerity in Europe, now we have violent strikes over inflation in China?So the next time you hear about the swift and painless ascent of China don't be so sure. At the very least it will not be painless.
Go to the article for more links. And don't forget the comments. Here is part of one I particularly liked.
by PulauHantu29The net of the comments? A hard landing is predicted for China.
The PRC "injected" over $800 Billion (officially) into their economy, i.e., directly into their RE and stock market (na dinto the pockets of wealthy RE developers) and creating more Billionaires in China then in the USA in just two year! Add to that the trillions of "hot money" and those markets became a bigger Bubble then the USA subprime imo.
Last year I watched TV interview various people complaining about rising food and housing...the PRC CB did nothing.
Last November I watched PBS interview a Shanghai realtor who said "prices are rising over 8% per month"...the PRC CB did nothing. Rural peasants were complaing that food was too expensive. One old man said "green peppers rose 300% in one month"....no action was taken to curb the problem.
Now we have riots and protests and the gubberment there is behind the curve.
Cross Posted at Classical Values