I promised to reproduce parts of a letter I received from my fabric supplier explaining the upcoming price increases.
“ Our long term Chinese Supplier has indicated that there is no end in sight to this unprecedented surge(40%) in prices….”
The letter goes on to explain.
“ internal market factors are pushing all sectors of the textile industry into uncharted territory, instigated by the devaluing of the USD, the rising Chinese currency, internal inflation, wages blowouts and textile factory closures, these combining factors have encouraged speculators to buy huge quantities of raw materials e.g.Cotton, Polyester, Rayon and Dyestuff then withholding them from the market place thus forcing upward pressure on prices.”
The letter closes with this statement.
“It is now the poorer countries turn to reverse the situation as they now realize the wealthy countries are reliant on them for a vast majority of manufactured goods and they are not going to cop the low wages and unfriendly working conditions combined with low price mentality of yesterday.”
This situations affects every country that has sold off their assets over the last twenty odd years. It is not going to change in the near future so we may as well hold tight.