“Inflation may be a long term problem in the country because food prices may surge again and the price of manufacturing resources is likely to grow fast in the coming year.”-Zhang Shuguang, Unirule Institute of Economics

In one of the few countries where the economy is good, people are being told to prepare for the worst.

What should a family do? Those making enough money to save should start investing in physical assets, including precious metals, real estate and antiques.  (That advise is probably too late for those of us 99%ers in the United States.)

To give you an idea of how good the Chinese economy has been doing, read this: “Among urban families with average annual personal income between 50,000 yuan and 100,000 yuan, 63.7% have family wealth management plans this year, compared with 27.5% last year.“-Zhang Jinbao, Tsinghua University and Citi Foundation

Current savings trends for Chinese workers include health care, education for their children and retirement (so much for China being a communist/socialist country).  But now even bank officials are prompting families to put as much as 70% of their earnings into property, to try an avoid the coming hyper inflation!