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The Final Nail In China's Deflationary Coffin: Wages In The 4 Largest Cities Are Now Dropping
Remember when during the inflation panic of 2011 we reportted that "Wage Inflation is Rampant In China As More Provinces Plan Minimum Salary Hikes." and wrote:
By the end of 2010, 30 provincial-level regions had raised the standard for the minimum wage, with an average increase of 22.8 percent year-on-year., Yin Chengji, spokesman for the Ministry of Human Resources and Social Security (MHRSS), said Tuesday. According to him, 29 provinces have issued the guideline for the minimum wages, and the benchmark line grew about 2 percent. In Shanghai, the local minimum wage was the highest nationwide, totaling 1,120 yuan ($170.2) per month."
And 2011 will be even worse: "Also, according to a China Business News (CBN) report Tuesday, in 2011, many areas would continue to raise the standard. A Xinhua News Agency report Wednesday revealed that northern Chinese city of Tianjin is considering raising the minimum working wage by 16 percent this year amid rising inflationary pressure and labor shortages."
Well, kiss all that goodbye. From Shanghai Daily:
Shanghai remained the top Chinese city for average monthly salary, but major cities saw their salary decline, recruitment portal Zhaopin.com said in a survey.
Shanghai’s average monthly salary was 7,108 yuan (US$1,135) while Beijing was second with 6,585 yuan and Shenzhen with 6,285 yuan came in third, the survey covering job postings on the website after the Spring Festival found. But Zhaopin.com didn’t reveal the sample size of the survey yesterday, citing business reasons.
But the average salary in Shanghai fell from last year’s 7,214 yuan in line with the 6 percent decline from a year ago to 6,518 yuan in the four largest Chinese cities, the survey showed.
Next stop: full blown deflationary prolapse and a PBOC that must scramble to do anything and everything (such as this) to halt the plunge.
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lowest chinese wages since lehman
This is no problem at all, ship them to California and we'll put them to work on our new HIGH SPEED railroad...
it's the giant sucking sound of jobs leaving the country---
next rounds of Chinese stimulus and bailouts will inflate this puppy off the lows...
judging by the 20+% higher high-end real estate transactions along the Pacific Rim, the Chinese insiders know that it's coming
nobody is more corrupt and yet so transparent in their corruption as the Chinese
Nobody is more corrupt and yet so transparent in their corruption as the Chinese.
That is whatcha call business savy. They learned from the masters and ran with a good idea.
China getting a taste of their own medicine -- good! That's what happens when you have a population out of control, and everyone is forced into cities to find work. I hope they drown in their own feces and air pollution. This is the nicest thing I can think of to say about them.
Bring them over here and they can work on Hilliary's 2016 election campaign...oops, never mind.
I don't know . . . Wall St. is getting more transparent every day; Washington too.
It's ok 'cause prices are dropping & there's no inflation! Wages should drop further! Everywhere!
Just because wages are falling doesn't mean asset prices will follow.
Duh, look at the US idiot.
The Chinese can manipulate asset prices just as good as the Jews.
The Chines probably learned how from American Jews.
The Chinese study all and follow none. They can copy better than a Xerox and sell you the printer so cheap that you will not even notice the price of the toner.
The Jew has no loyalties.
They'd scrap America in a heartbeat to follow the Asian tiger.
That is, if the Asians even want them around.
I wouldn't if I were them.
I say watch the Dutch ... or u ain't much!
Good thing they had/have that one baby per couple policy or things would really look shitty.
But you can still afford to buy a tesla.
They've been trying to build an economy by the five year plan but unfortunately reality doesn't look at calenders.
Horey Sheet
When your economy is tanking..you are not going to spend alot on Enviromental goodies...so dont expect the smog to get any better by redevelopment..it might get better when the factories shut down...
Long Beijing/Shanghai helicopter pilot training schools.
What would Frankenstein say:
Fire, bad
China, bad
US Dollar, good
Russia, bad
You cannot pay for this kind of insightful analysis.
Thanks Frank!
I always thought Frank and Steins would be a great name for a bar/restaurant, serving hot dogs and beer.
Deflation in China... just wonder how Mario will be able to spark inflation in eu.
Wha hefer eh teeks
Anthony Migchels ~ Bankster Dialectics: The West vs. Russia/China ... ~ The Plane Truth ~ PTS3127
http://www.youtube.com/watch?v=Q90k6Mk7CAc (1:49:53)
They need more bankers...their incomes never go down!
China's entire economy will go bust unless they unpeg from the U.S. Dollar system and immediately launch their version of SWIFT -- the China International Payment System (CIPS).
With Yuan swap lines established in a multitude of countries, China could re-route trade away from the U.S. by using CIPS, which will facilitate the already-established swap lines.
Clearly, China cannot continue to rely on revenue from tapped out U.S. consumers.
Clearly, China cannot continue to rely on revenue from tapped out U.S. consumers.
So, you say wide-eye have no money. Hmmm..let me see..me buy hard assets from wide-eye... give wide-eye more cash to buy my crap. Me likey.
Here in the Deflationists Lounge we aren't too happy with the association of coffins with our favorite economic medicine. The coffin was decreed by those who follow the something for nothing economic policies. The invisible fist ultimately wins and the hangover isn't responsible for the hangover.
That 'invisible fist' has been spiked to the counter - ala, Luca Brasi, since 2008. Not that it won't finally un-pin itself and connect, just not quite yet... Unfortunately, the 'medicine' you speak of would be akin to a Phenobarbital chug-a-lug in the current debt-financing environment of today's economics. Stated otherwise, we're no longer in a situation of 'inflate or die', we're headlong into inflate And Die.
They could just trade high tech good for raw materials with Russia. Maybe a special watch that would buzz when your blood alchohol level drops below a certain level. It could be just set to buzz every hour - no need for exotic sensors.
I'll drink to that.
bonus time
NSA suicided all US tech and the Chinese can't invent stuff so what do they expect. Nothing new to work on.
Don't worry about the tech industry.
China will buyout those distressed tech giants at a discount.
The NSA will be taking orders from the Chinese.
NSA takeout, so to speak.
The target of NSA surveillance will not change.
It will still be the American idiot.
With negative rates, I'd not be surprised to see negative wages...
... and jokes aside - they do actually exist. In many 3rd world countries you pay or bribe to get a job. Sometimes it takes 1-2 years to pay off that initial investment. If one got fired prior, he'd technically be paying to work for someone.
Horrible as the idea is to me, I am "blessed" with a PBS station here in the Centennial State that broadcasts twelve different English-language nightly news programs from all over the world.
CCTV America (China) has been frantically walking back the old "7.5% growth or we die" meme. Their new line this week is that 5% is even better than 7.5% because it is all domestic growth and that is better than a 50% larger growth from exports.
Also, there are 18,000 corruption cases involving the movement of $129 B overseas, implying that the new anti-corruption campaign will end this drain and, once again, 5% without corruption is as good as or even better than 7.5% with corruption.
Finally, the iron-gated mercantile empire of China is suddenly rolling out the red carpet for foreign investment once again in about half the sectors of the economy that are currently closed to the white devils.
My conclusion is that they are seriously worried, growth is nothing near even the 5% that is their new acceptable target for public consumption, and that they are willing to promise anything to anybody in order to get new suckers busy building factories and making jobs for construction workers inside the country.
Also, insane as it sounds in a country with massive over-capacity, they are pledged to increasing industrial production as job # 1.
It's been a very interesting story to follow that does not promise good things for economic growth in 2015 and beyond.
Exactly - they have built a country for 1B people to live in urban ghettos....but in reality it is nowhere that, the farmers are starting to understand it is better to 'hand to mouth' than to go a powder concrete condo in a ghost city. The over capacity in china is hard to comperhend.
Can't wait for the Yuan to be the new reserve currency! /sarc off.
So wages have just dropped slightly after growing 6-fold in only four years? Big deal.