"In essence, Klaus has the following theory. When, in the
future, Western political leaders realize that the Bernanke-
type monetary policies don't really work (or are doomed to
fail, as I would put it), but lead to inflation and a
depreciation of the dollar, they will increasingly pursue a
policy of protectionism, which will buy the developed
countries of the West some time and keep jobs from migrating
to low-cost service providers, such as India, and more
competitive manufacturing centers, such as we find in China,
Vietnam, and Eastern European countries, among many others. A
sharply depreciating dollar and import duties will lift the
price level in the U.S., but the disadvantage of higher
domestic inflation could be partially offset if production
and tradable services shifted back to the U.S.."http://www.siliconinvestor.com/readmsg.aspx?msgid=19143118 |
