| |||||||||||
China could unleash inflationary nightmare in U.S., warns Schiff
According to Peter Schiff, President of Euro Pacific Capital, “the only way China can stop its inflation problem is to stop importing it from us [the U.S.], which means … they have to let their currency rise”. If that happens, “the U.S. had better brace itself,” says Schiff (via Yahoo Finance – Tech Ticker). “It will unleash an inflationary nightmare here in the United States. As the Chinese currency increases in strength, the dollar must decrease. And, so Americans [would] experience higher prices, falling purchasing power and a lower standard of living.” Source: Yahoo Finance – Tech Ticker, January 24, 2011. 4 comments to China could unleash inflationary nightmare in U.S., warns SchiffLeave a Reply | |||||||||||
Copyright © 2021 Investment Postcards from Cape Town - All Rights Reserved |
[…] post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail. China could unleash inflationary nightmare in U.S., warns Schiff was first posted on January 26, 2011 at 9:00 am.©2011 “Investment Postcards from Cape […]
Who cares? What it will mean is that we’ll stop importing their crap and the US will have to rebuild our manufacturing base. We need those factories and jobs here. I hope this destroys this globalism that benefits nobody except international corporations.
I love seeing all those companies that moved out of the US go bankrupt.
China’s Innovative Way of Skinning the United States!
Mark Twain is credited with an early use of the cliché “more than one way to skin a cat” in A Connecticut Yankee in King Arthur’s Court, as follows: “she was wise, subtle, and knew more than one way to skin a cat, that is, more than one way to get what she wanted”. Thefreedictionary.com defines beggar-thy-neighbor as: an international trade policy of competitive devaluations and increased protective barriers that one country institutes to gain at the expense of its trading partners. Under the guise of fostering ‘indigenous innovation’, the Chinese government has creatively used a non-conventional, subtle version of beggar-thy-neighbor. Its version doesn’t entail the competitive devaluation of its own currency, which would enhance China’s exports and inhibits its trading partners’ exports. China’s version perpetrates an over-valuation of the currencies of one or more of its trading partners. This negatively affects all the trade of the pegged trading partner(s), not just trade with China. During the recent period China pegged its currency to the U.S. Dollar, its version of beggar-thy-neighbor was 8 times as damaging to the U.S. economy as what the media refers to as “China keeping it currency undervalued”.
In November 2003, Warren Buffett in his Fortune, Squanderville versus Thriftville article recommended that America adopt a balanced trade model. The fact that advice advocating balance and sustainability, from a sage the caliber of Warren Buffett, could be virtually ignored for over seven years is unfathomable. Until action is taken on Buffett’s or a similar balanced trade model, America will continue to squander time, treasure and talent in pursuit of an illusionary recovery.
World can do without all the crap produced in china-Inflation imported-it will help reduce worldwide obesity by reducing our purchasing power.