Posted on 01/16/2008 11:53:50 AM PST by mojito
In the latest sign that officials in Beijing are serious about reining in rampant inflation, China tightened controls on food prices Wednesday, requiring producers to seek government approval to implement any price increases.
According to an official Xinhua news report posted on the government's English-language Web site, China's top economic planner announced price controls on a package of products, including grain, edible oil, meat, milk, eggs and liquefied petroleum gas.
"Major enterprises are required to submit the price-raising scheme to the government for official approval 10 working days before they intend to raise the prices," said the National Development and Reform Commission, or NDRC, in a circular on interim price intervention.
"This NDRC directive is stricter than expected, pointing to escalating inflation pressures in China," wrote Ting Lu, Merrill Lynch's Hong Kong-based economist.
China's inflation rate hit an 11-year high of 6.9% in November. The consumer price index climbed 4.6% in the January-to-November period, exceeding the central bank's official target, which pegs CPI growth in a range up to 3%.
(Excerpt) Read more at marketwatch.com ...
I never knew Richard Nixon was Chinese...
Sounds like a Democrat plan.
Chicom Boss#1: Who was that American president who visited in 1972?
Chicom Boss#2: Their wage-and-price control president?
Chicom Boss#3: How’d that work out for them?
Chicom Boss#1: We should try that here!
Chicom Boss#3: But how’d that work out for them?
Or Hugo Chavez. Ask the Venezuelans how well price controls are working out for their poor.
The “Whip Inflation Now” buttons are made of lead.
Price controls are SO 1970’s.
I guess the Chinese are going to learn the hard way that price controls don’t accomplish anything except drastic shortages and rationing.
You forgot to mention rampant corruption.
Shortages to follow soon ...
“China’s top economic planner announced price controls on a package of products, including grain, edible oil, meat, milk, eggs and liquefied petroleum gas.”
It’s a matter of time before we read about shortages of grain, edible oil, meat, milk, eggs and liquefied petroleum gas.
Made me think of Nixon, too.
The growth of China’s economy is due to oil. But, the Chinese have no idea how to deal with an oil economy any more than anybody else does and they don’t know how to float their new Navy when the oil gets tight, which it is already. The inflation has begun and will never end.
In a (mostly) free market economy, price controls cut back on the supply, because manufacturers don’t want to sell at a loss. In a communist economy, it can work, since the government controls prices. Problems will surface in other areas of the economy, but the people can’t complain, because the government controls everything.
Well, they still haven't learned that Communism sucks, so... *shrug*
And it will work about as well....
Goodie.... rubbing hands together and cackling........
They are going to make economic competition VERY easy with idiot ideas like this......
Rudy Giuliani’s New York and Mitt Romney’s Boston both practice price controls on rental housing.
Price controls.
That ultimately will really screw things up for the chi-coms.
GOOD.
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