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June 9th Texe Marrs powerofprophesy.com
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businessinsider.com | Chinese inflation -- including up to 20% food-price inflation in a month -- is reaching levels that threaten social stability, according to RBS.
To get a sense of life in the Chinese asset bubble, check out this chart from Huang Zhen at Caixin.
It describes the monthly budget of a manager at a foreign firm in China, who has a salary of 480,000 yuan ($78,000). Each month leaves him with only 2,000 yuan in personal spending money. Further inflation would cause total panic:
If prices rose by 3 percent, he would no longer sponsor poor students; if it rose by 5 percent, he would have to cut extra curriculum courses for his child; if it rose by 8 percent, he would have to reduce his pocket money and living expenses for his aging parents; if it rose by 10 percent, I am afraid we all would begin to panic.
Image: Caixin
And remember, this is for a man earning $78,000-a-year. There are a billion Chinese who earn less than that and have already started to panic
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