Also the planned blue skies for the Beijing winter Olympics where a significant amount of Industry will be required to stop production to minimise pollution and save face. Beijing is surrounded by coal burning industry in Harbin and Hebei, also it is a valley surrounded by Mountains so pollution is trapped. This is a particularly bad problem in colder months. Therefore basically the whole of the region will be shut down from end of January to ensure blue skies and no pollution while the winter Olympics are on. What other consequences this will have on inflation, socially, who knows. I have seen reports that there are up to 300 mil unemployed people in China many of whom are male, laid off due to the surge in iron ore and energy prices last year. Buy March you would have to think many of these people would have been unemployed for up to a year. That does not sound like a particularly safe or sustainable situation too me.
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