09/08/2005 1:09:52 pm
China in Your Wallet. Prices for houses and apartments are rising fast in the entire Western world. Great when you sell, tougher when you buy. The main reason being the extremely low interest rates. And they are low because the inflationary pressures are so weak. Why? Mainly because the world is flooded with - mainly - cheap Chinese goods and services. It is indeed a global economy we have. And it illustrates the risks of protectionist measures to prevent imports of cheap goods. Consumers may lose not only as buyers of those goods, but also as payers of interest rates and owners of houses and apartments.