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China can help US out of its inflation trap

NEW YORK – “Goods produced by China’s hundreds of millions of workers are a strong anchor for stabilizing global inflation” read the banner headline at China’s “Observer” (guancha.cn) website June 10, quoting People’s Bank of China official Guo Shuqing, the Communist Party representative at the central bank.

The “Observer” site frequently floats trial balloons for China’s top policymakers.

Guo dismissed the reassurances of Western central bankers and offered an alarming assessment of inflation risk: “Inflation is coming as scheduled. Moreover, the magnitude is higher than the expectations of central bankers in the United States and Europe, and the duration of inflation does not seem to be as short as many experts predict.”