Yikes, went out to Aushan this morning at 8 am (when the hypermarket opens - always crazy crowded but early, when it opens, is often the best time to check out!).  Below freezing!  Just!  at -1 Celcius, however that's cold here.

Went to my favorite Nan Xiang Xiao Long Bao shop (Nan Xiang is a place in the Jia Ding section of Shanghai) little dumplings or

南 翔 小 笼 包 Nan Xiang small steamed meat-filled buns

(while technically not dumplings, they are very similar).  Delicious!  OH - but the price went up to 10 yuan for 10!!  Used to be 8 yuan just a couple of days ago!!!  This shows you the impact of the increase in prices to the average consumer here in Shanghai and the rest of China.  Much of the increase is due to pork prices - however, without an appreciation in the exchange rate, the price of diesel and gas has obviously increased as well.  So I had to pay 26 yuan for 20 xiao long bao and a huge bowl of noodles with meat and wild vegetable.  Shoot that's almost four dollars - of course I couldn't quite finish all of the noodles!  I know, all of those starving people in ...

Speaking of prices:

NOTICE THE CHINESE GOVERNMENT HAS APPRECIATED THEIR CURRENCY!!!

Much faster than previously, so the dollar now only gets 7.3 Renminbi!  Used to be 7.5 when I arrived.  The government is less worried about export prices increasing and more worried about calming inflation by lowering import prices.  ALSO note that export subsidies are being cut right and left!  Yikes - the Chinese want to keep the wheat, rice and other exports here in the country, so they are even taxing some of the exports now!  Maybe too much change too fast?!!?  We shall see, eh?!?

These are the topics for my classes next year!  We will cover the foreign exchange market, though only briefly.  What an interesting time to be teaching finance and economics in China!  Exchange rates, open markets, US potentially falling into recession, building going on amok here in China while slowing EVERYWHERE else in the world!  I LOVE IT!