Normal
Re: hyper inflation in the USA?You also have to consider how China affects the value of the dollar in the world market. In order for the Chinese economy to keep growing, they have to have a steady stream of exports so that they can provide jobs to workers. If their exports fall off, there would be less economic growth. That would cause there to be fewer new jobs created. This would lead to more unhappy Chinese people who see the government as repressive, which could cause the current little protests that china sees occasionally would turn into big protest and upheaval of power. Similar to whats happening in the middle east right now. So the Chinese government keeps buying all the US debt it can so that the balance of trade stays where it is. This means that while the total number of dollars is going up, the actual amount in circulation is going up at a much slower rate. The question then becomes, what happens if there is an upheaval in China, or what happens when the Chinese government is no longer able to keep up the debt purchasing.
Re: hyper inflation in the USA?
You also have to consider how China affects the value of the dollar in the world market. In order for the Chinese economy to keep growing, they have to have a steady stream of exports so that they can provide jobs to workers. If their exports fall off, there would be less economic growth. That would cause there to be fewer new jobs created. This would lead to more unhappy Chinese people who see the government as repressive, which could cause the current little protests that china sees occasionally would turn into big protest and upheaval of power. Similar to whats happening in the middle east right now. So the Chinese government keeps buying all the US debt it can so that the balance of trade stays where it is. This means that while the total number of dollars is going up, the actual amount in circulation is going up at a much slower rate. The question then becomes, what happens if there is an upheaval in China, or what happens when the Chinese government is no longer able to keep up the debt purchasing.
