Notes for Investors: Chinese consumer price inflation continued to rise rapidly in November, underscoring fears that the economy is overheating. Interest rate hikes are on the horizon.

However, chinese food policy is very interesting and we pay attention to Yra Harris´ thoughts. If food prices are really the major variable causing prices to rise, wouldn’t an appreciating YUAN with increased food imports do a great deal to stem food price inflation?

China is a semi-command economy, so we are skeptical of China’s inflation worries as an economy that has so much excess capacity and a huge pool of available labor isn’t in danger of uncontrollable inflationary pressures.