U.S. prices low by the Chinese support!.

<P> According http://finance. News, U.S. consumer prices surprisingly low. .In view of Sino-US trade friction will continue to go on, but not backwards, as in supermarkets and Wal-Mart's low prices needed to keep Sino-US trade </ P> <P> use once every three years academic leave .Since the beginning of this year in August, I took family members to visit Cornell University for six months. .The city where the university has a nice Chinese name, called "fluttering of flag color good", is said to be named because of the beautiful scenery. .In fact, it is located in north-central New York, the Appalachian Mountains, the equivalent of the mountains in Guizhou, China. .In such a "Birds do not often fly," the place, but they have this famous Cornell Ivy League; five million people in the city, students on more than thirty thousand. .</ P> <P> we rented a small house to stay. .House owner named Daniel, is a lovely little girl with two single fathers (according to him, his wife "stupid" are gone.) .</ P> <P> fluttering of flag Ithaca more than half of the family (ie, the median family) annual income of $ 39,000 or less. .What the Chinese equivalent of income? .To know the answer, we must understand the concept of purchasing power parity. .The starting point of purchasing power parity is not the same as the price of each country, the same purchasing power of income in different countries are different. .Purchasing power parity is to eliminate the impact of price, calculated in the same price level income countries. .For example, the United Nations Development Programme announced by China in 2004 the total GDP in nominal exchange rate is 1.9317 trillion U.S. dollars, while the total GDP in PPP terms is $ 7,642,300,000,000, that in 2004 the overall price level in the United States about China's 4 .times. .In the past three years, the RMB against the U.S. dollar by 9%, the current U.S. price level relative to China the same percentage should be increased to reach 4.36 times. .Therefore, the fluttering of flag Ithaca median family annual income is only about $ 8,945 in China, at the current exchange rate is 67,087 yuan. .Beijing city in 2006 per capita disposable income of 19,978 yuan, by 3.4 persons per household terms, equivalent to 67,925 yuan per household. .That is, fluttering of flag colors and the excellent level of real income rather in Beijing. .</ P> <P> neighborhood we lived in the old districts are fluttering of flag Ithaca, lived in a number of low-income people. .Here each house are relatively small, with an area estimated at between 100-120 square meters, and have some years in a row. .We live in the house apparently had just been renovated, but still look old. .Daniel is not like a rich person, but you know he does not live frugal. .</ P> <P> Perhaps he need not frugal, what the supermarket is very cheap. .Such as a gallon of skim milk, $ 2.2, equivalent to about 4.4 yuan per liter, while the domestic one liter of skim milk is similar to the triple 7 yuan. .Now is the season of ripe grapes, per pound (about 0.9 Jin) was 99 cents; watermelon still, $ 4 a big one; Bailan melon and cantaloupe are two $ 5, chicken, chicken wings less than $ 1 a pound; .Domestic ridiculously expensive the most expensive per pound of salmon no more than 10 U.S. dollars. .</ P> <P> of the things Wal-Mart is too expensive people can not believe Wal-Mart had been able to profit. .We went to Wal-Mart to buy a bag of small wrench, wrench sizes and inside there are dozens, but the price was 99 cents. .Regardless of labor costs alone, the consumption of steel is also worth the price now! .</ P> <P> look at the car. .Honda's new Accord sedan has 08, according to the U.S. authority car magazine "Auto and vehicle owners," saying that this is a "Man is the car" cars, than the current version of a big slice of high-level. .Price? .Starting from $ 19,000! .That is less than 15 million yuan, more than the most expensive Accord 4 million cheaper! .</ P> <P> in the past decade, U.S. house prices rose by 80%; in Silicon Valley, Washington, DC, Boston and New York this area, the price of a house easily hundreds of thousands, millions of dollars. .However, even such a rise, at constant prices (ie, after the exclusion of general price inflation) terms, the current U.S. house prices only twice in 1890; and, beginning in 1997, housing prices rose before the actual U.S. .price does not exceed the 1890 level. .However, since 1898, the U.S. real income rose by at least 8 times. .</ P> <P> Related: China, U.S. prices U.S. Prices VS Price Competition in China prices. The United States and China, the two superpowers, I have lived, I have spent, I have earned any money, I .spend any money. .We do not take the rate that matter, say eight thousand a month in China, eight thousand a month in the United States, take the price to make a comparison. .</ P> <P>.