For one thing, I don’t expect growth in China to slow sharply anytime soon. That’s a big contrast with what happened in the 1970s, when growth in Japan and Europe, the emerging economies of the time, downshifted — and thereby took a lot of pressure off the world’s resources.That doesn't sound right to me. Surely the supply shocks from the commodities markets contributed to the slowdown in growth growth rates. Similarly, isn't a big increase in basic commodities exactly the sort of thing we would expect to slow down growth in China? UPDATE: Why I'm wrong -- "China’s also growing at around 10 percent per year, a rate deemed too fast by the country’s own leaders. Expansion in China could slow considerably and still be greater than 4 percent–sufficient to place a lot of pressure on food and energy stocks."
This article available online at:
http://www.theatlantic.com/politics/archive/2008/04/monday-commodities-price-blogging/44485/
