Yuan is pegged to US$. And we buy most everything from China. And the further we devalue the US$, the less the dollars in Chinese hands are worth. Forcing them not to hoard the dollar and invest in the US. In the end, we win buying things cheaper, making chinese poorer, and having great american infrastructures funded by the Chinese.
I guess if you are the consumer that buys most of the junk they sell at Walmart , you are in shoppers heaven. As long as you can afford food and gas for your car( thats what visa card is for).
Hmm. Been to shanghai lately? Where exactly is the infrastructure being built? Who is the loser and who is the winner here?
It doesn't really matter.. Inflation works to the same affect in bringing down the Chinese wealth. Devaluation, or Inflation, at least one of those will get them.. making us all very wealthy in the process.
Walmart junk? Lately it seems everything I buy is made in China. Some examples I just bought: Pottery Barn furniture, Tommy Hilfiger glasses, 2 NEC monitors, Seagate harddrive, high-end Saitek keyboard, Delta drill press, etc etc.
Save money.. Live Better. I guess you are one of those that would rather pay $20 for a tooth brush. I like WMT, because I like the fact that I can shop there 24/7 and can buy practically everything I would ever need from one place. thanks.. full disclosure: I'm a WMT shareholder.
Hey, dumbass. Inflation hurts dollar holders - including the American public. While your busy celebrating at the bargain bin, food, tuition, gas and medicine has gone up over 50% for the average American. Real brilliant, you tool.
Inflation is the grease that smoothes out our economic wheel. Without inflation, our economic productivity stifles and our capital lives would be in grave danger.
We're not talking about paltry inflation. We're talking about endemic inflation that creates wild swings in the business cycle - to which you defend as mercantilistic - and destabilizes the economic climate and makes it harder on everybody. Its a simple cost benefit analysis to which the bulls only focus on one side (high exports). As far as inflation being an economic panacea. Not really. Innovation drives economic growth. Not credit. Credit is a necessity, but its not the driver. Money supply growth a little higher or lower than real economic growth is fine. ie small inflation or deflation - makes little difference. And there are far better arguments for a commodity-backed currency than a fiat one. Human nature comes to mind.