China's increased costs and inflation

China's increased costs and inflation.
http://blogs.forbes.com/investor/2010/12/20/chinas-coming-inflation-nightmare/
Their inflation rate highest level in over two years, food is up 10% year over year.

Interesting that the cost of food accounts for 33% of their CPI.  In the US Food and beverage account for around 15%.

Takeaway for me is costs to manufacture will continue to inflate and their currency will appreciate against the dollar.  If you purchase from China suppliers try to buy in USD and you can gain.

Rare Earth- The Boom than Bust

The supply and demand will be out of balance the next 2-3 years as several non-Chinese reengage their mines. The cost of the elements have already skyrocketed 300-400% in the past year and we are only beginning the world shortage period.

The added global capacity will surely set up the bust in 2014?

http://datacenterjournal.com/index.php?option=com_content&view=article&id=3960:rare-earth-metals-a-double-edged-sword&catid=25&Itemid=100126

iSuppli trims forecast on soft demand, inventories - Solid State Technology

iSuppli trims forecast on soft demand, inventories - Solid State Technology