Many countries, including Canada should have, and will now have to look hard at their trade deficits. China has for many years used dirty tactics in order to crush other countries manufacturing sectors. Since everything in China is government controlled, they have the ability to use the law of averages, and have no problem subsidizing good potential world wide products, with money made from profitable products. This is done to undercut, until the competition is out of business, or too weak to compete. Then they stabilize the price, and turn it into another profitable product, which again will help subsidize the next. China is also the money and brains behind products made in many other 3rd world countries.
Yes, everything is going to go up in price, unfortunately. Unfortunately this inflation of prices will also inflate borrowing interest rates. The bright light in all of this, is that the middle class in consuming countries may actually have a chance to survive in the long haul, and prices should stabilize, after some uncertainty.
As for me, I'm in the process of upgrading some of my big ticket stuff, and holding onto some of my other stuff for a while, because it will go up as well, along with new, and I will sell when I think I'm going to do ok.
