The Editors received the below from Sam Baker, DirectorAsia group of Trans-National Research
Duncan's conclusion rests on flawed premises that financial andor economic bubbles are bad, and that deflation is bad. Let's take a closer look.
First, though, I'd like to set the record straight regarding Duncan's assumption that deflation has been a permanent part of the Chinese economy since 1998. In fact, CPI has been in positive territory for about a third of the time since then, and returned to positive territory again in the past couple of months.
Even if Duncan's premise about deflation being a chronic part of China's economic landscape were true, his...