I find it fascinating that no one is talking about the real reason for Sherman’s visits (hint, it starts with a B and ends with a T). It almost verges on self-censorship at this point. The US state department isn’t saying it. The Chinese government isn’t saying it. Neither the liberal nor conservative media is saying it. The Chinese media, not even tabloids like Global Times, is saying it. Heck, not even the Indian media is saying it.
I wonder how long everyone will ignore the 7 trillion dollar elephant in the room before some steps out and screams—
Apres Moi, Le Deluge.
Yeah, I don't know what you are referring either.
The bailout, or QE as Helicopter Ben was fond of doing, has been with us since the 2008 financial crisis.
QE in America is just a normalized financial practice done by the central bank it seems to me.
It is what happened in Japan, with their deflation. They kept pumping money into the system, which it was QE.
Bernanke, back then, criticized that as something that will not work and the Japanese were misguided. Irony would have it, that later Helicopter Ben wound up doing the exact same thing he poo-pa, and he will go down in history as Helicopter Ben.
The important point it seems to me, is what happens next. All this money printing, is a sign of deflationary forces being strong. US inflation may be transitory. The inflation rate does go up and down, and it is not that high. After this one time shock of the pandemic, when things get back to some sort of normal, then we can see what inflation really exists. If the US economy cannot get back to normal, then it will be deflationary.
This experiment in QE is very interesting for the Chinese.
One theory of deflation, the Japanese believed their declining population was a big cause of that deflation.
Not sure if everyone buys that, I know I don't, but the CCP is watching that closely.
The CCP even got their DCEP ready, where they can inject money directly into the system via the consumer. If the CCP thinks deflation is coming, they will do that.
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Note that the money printing, historically caused the currency to depreciate or even collapse.
Today for the US Dollar, things are more complicated.
Another factor regarding the currency, are the debt levels and we know who owes the most. The debt could make the USD go down in value.
The trick is this, where I think it gets complicated.
If the USA is printing money, then the EU could retaliate and do the same, printing money, but the EU has been kind of doing that anyways with the negative interest rates, and then the Chinese might want to print money via the DCEP.
We live in a very usual time, where everything could change quickly, but in directions we cannot really foresee.
If someone says this is certain, they probably will be wrong.
