regarding us-china trade balance and exchange rate of moolah, the view ought to be that ...
(i) american homes are being transformed, via leverage (i.e. american credit) and globalization, into chinese infrastructure and productive assets
(ii) american jobs are being transformed, via fiat money inflation and officialdom business-unfriendly red tape, into chinese jobs
and so, thus, (iii) american credit is being transformed into chinese capital, with chinese capital being turned into american obligations (claims on future american income)
given the awesome amount of fiat money inflation engendered by the american financial industry, and the insatiable demand for capital of the chinese manufacturing industry, the paper money inflation, when recycled via trade and t-bill feedback loop, still allows for a low interest rate, due to 'too much excess savings looking for a home' nonsense
my comment regarding above manifest facts is that we must enjoy the process, for it will stop, eventually |
