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It will be interesting to see what happens when China no longer eats US inflation, so hurray for an interesting future!
by _Codemonkeyism 7y ago
It will be interesting to see what happens when China no longer eats US inflation, so hurray for an interesting future!
- _Codemonkeyism 7y agoWell it will be interesting. For the last decades the US had printed money with bonds and exporters to the US have bought those bonds to spend their dollars and not put pressure on their own currency. If China is no longer exporting to the US it will no longer need to buy bonds, so if the us is printing money with bonds where dollars are not parked, those dollars increase dollar supply and therefor increase inflation. Money 101.
- merpnderp 7y agoIf those jobs come back to the US, then less need for bonds. If those jobs go to Vietnam, won't they just buy the bonds to keep their currency stable against the dollar?
- CharlesColeman 7y agoWhy are you responding to your own comment?
- AnimalMuppet 7y agoProbably because of not knowing about the "edit" button. At least, replying to myself is what I did before I knew I could edit comments.
- ThomPete 7y agoMoney 101 would dictate inflation in us economy, we dont see that. So i guess we need to ad some more nuance to things
- _Codemonkeyism 7y agoChina hasn't stopped buying US bonds, or have I missed something?
- ThomPete 7y agohttps://www.economist.com/finance-and-economics/2019/03/28/why-is-inflation-in-america-so-low https://www.economist.com/finance-and-economics/2019/03/28/w...
- Fjolsvith 7y agoThat's why precious metals are being legalized as tender across the states.