Quote:
Originally Posted by Sylvanfan
You don't think the US is maybe trying to get the value of their dollar down to make themselves a bit more competitive and reduce the value of their debt? The US is dirt cheap compared to pretty much any country in Western Europe in terms of the basic cost of living. Even with 20% inflation, things would still be cheap there. The people who'll bear the brunt of that is those who actually have savings in the form of cash. Which in turn would probably get people sitting on cash to spend it or put it in things like equities or real estate that they hope would appreciate.
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And as a result, China and other countries are being more cautious about loaning money to the US.
If that well dries up, what then? Without China, the US would be screwed.
I don't think governments should be trying to stimulate the economy by trying to create levels of inflation/deflation no matter what.