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May 20, 2008

China gives and China takes away on inflation — especially for WallyWorld

Jim Jubak tells us why soaring oil prices could be a big double whammy. Chinese companies have eaten all the costs increases they can and they ain’ts gonna eats no more.

That means YOU, Wal-Mart, where a whopping 70 percent of the goods are now “made in China.” Ironically, economic talking heads are mentioning how the recession is going to drive more and more people to Wal-Mart.

Well, global inflation is probably going to start giving people Wal-Mart sticker shock. Considering that official officially unreliable inflation rate for April was 4 percent, and was really at least 5 percent and growing, by the time we get to back-to-school shopping in August, a lot of Chinese-made clothes, shoes, etc. ain’t gonna be near the price of a year before.

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