Trickle down economy at work.

[Xtrema]

http://edition.cnn.com/2008/WORLD/asiapcf/10/19/china.economy.ap/index.html

Not surprised.

[benyl]

Hello Stagflation.

[Xtrema]

http://en.wikipedia.org/wiki/Stagflation


central banks can cause inflation by permitting excessive growth of the money supply,[8] and the government can cause stagnation by excessive regulation of goods markets and labor markets;[9] together, these factors can cause stagflation. Both types of explanations are offered in analyses of the global stagflation of the 1970s: it began with a huge rise in oil prices, but then continued as central banks used excessively stimulative monetary policy to counteract the resulting recession, causing a runaway wage-price spiral.[10]

hmmm, learn something new today.