<<They are increasing everyone's funding cost in the process, and those two can least afford it!>>
... yes, excellent news for savers who make the correct allocations :0)
... problem, what is the correct allocation?
Another thing about <<screw>> ...
What happens if China is working to earn USD, and turn around to use the earned USD to buy Japanese Yen, instead of sticking the pile in US treasuries?
... Well, Yen will tend to rise, and USD will tend to fall, pushing Japan to intervene against the Yen and for the Dollar by printing more Yen, which the Chinese will buy more of, et cetera, ad infinitum, and oh my golly, pretty soon we would have a mess bigger than we already do, perhaps like a putrid whale on top of a kitty litter box in the guest bathroom, difficult to not notice :0)
Continuing in this way, US will lose more factories, along with Japan, but both plus China will have an improved lifestyle of less expensive DVD machines and Lexus SUVs, until not, I guess. Win win and win, or not.
I am so confused.
Chugs, Jay |
