China's Economy, Praised by Obama, Not as Strong as Suggested

Flashback to Obama's State of the Union Address. Do you remember all of his love for China and how they were doing things better than we were. Well, once again we have found that simply isn't the case. On this blog, we have already discussed the Chinese high-speed rail Obama praised is nothing less than a disaster waiting to happen--plagued by poor engineering and cost cuts. Now we find out their economy isn't speeding along on a high-speed rail either.

This from the New York Times:

China's February inflation stayed elevated on a double-digit rise in food prices, adding to pressure for communist leaders to cool surging living costs they worry could fuel unrest.

February consumer prices rose 4.9 percent while food price inflation accelerated to 11 percent from January's 10.3 percent increase. That exceeded Beijing's 4 percent target for the year and defied forecasts by analysts who expected the rate to ease.

Inflation, especially in food prices, is dangerous for China's leaders because it erodes economic gains that underpin the Communist Party's claim to power. Poor Chinese families spend up to half their incomes on food.