Yeah, the US has the massive advantage of being the world's reserve currency (for now). As such they can EXPORT inflation. Se the Wall Street Journal: The Lates

Yeah, the US has the massive advantage of being the world's reserve currency (for now). As such they can EXPORT inflation. Se the Wall Street Journal: The Latest American Export: Inflation What do the years 1971, 2003 and 2010 have in common? In each year, low U.S. interest rates and the expectation of dollar depreciation led to massive "hot" money outflows from the U.S. and world-wide inflation. And in all three cases, foreign central banks intervened heavily to buy dollars to prevent their currencies from appreciating. When central banks issue base money to buy dollars, domestic interest rates are forced down and domestic inflationary pressure is generated. Primary commodity prices go up quickly because speculators can easily bid for long positions in organized commodity futures markets when interest rates are low. The world saw a surge in the dollar prices of primary commodity prices in 1971-73 following the Nixon shock of 1971 when the U.S. abandoned the gold standard. There was also a commodity price surge during the Greenspan-Bernanke shock of 2003-04, when the federal-funds rate was reduced to an unprecedented low of 1% followed by a falling dollar. http://online.wsj.com/article/SB10001424052748704405704576064252782421930.html http://online.wsj.com/article/SB1000142405274870440570457606...