The world outside the US has become like a giant capacitor for US inflation. The charge that’s building up is the accumulation of dollars and dollar-denominated assets in the hands of foreigners. When the outside world wakes up to the threat of inflation in the US, they will start unloading US dollars, which will suppress the dollar’s value in foreign exchange markets, which will make prices of imports (including oil) go up, and that will be a separate vector feeding price inflation in the US.

Quelle: Hooray for the Economic Recovery!…of 2016

Dieser Eintrag wurde am Sonntag, 8. August 2010 um 21:36 aufgeschaltet und ist unter den Labels USA, Wirtschaft abgelegt. Du kannst das Blog auch über RSS 2.0 abonnieren. You can skip to the end and leave a response. Pinging is currently not allowed.