Thread: 40 Signs The Chinese Economy Is Beating The Living Daylights Out Of The U.S. Economy

The Chinese are having a VERY difficult time keeping a cap on inflation b/c the US is flooding their market with USD...they MUST then purchase those USDs with freshly printed Yuan in order to keep their currency fixed, which in turn increases their money supply hence the spike in inflation.

The USD is more resistant to inflation b/c it has a much MUCH higher demand. This is part of our Treasury Dept foreign policy to combat the artificially devalued Yuan. If we can't force them PRC to float its currency, then we will combat the issue with forced Yuan inflation.

Originally Posted by lnvanry

The Chinese are having a VERY difficult time keeping a cap on inflation b/c the US is flooding their market with USD...they MUST then purchase those USDs with freshly printed Yuan in order to keep their currency fixed, which in turn increases their money supply hence the spike in inflation.

The USD is more resistant to inflation b/c it has a much MUCH higher demand. This is part of our Treasury Dept foreign policy to combat the artificially devalued Yuan. If we can't force them PRC to float its currency, then we will combat the issue with forced Yuan inflation.

either the Yuan suffers higher inflation and the Chinese have to pay higher for goods or the US allows the USD to inflate. not many in the lower income quintiles in the US can afford to pay much higher for anything. you have got to love the basic fundamental flaws of capitalism, problems are never solved just shifted from one place to another.