Thomas Kee

Global Inflationary Pressures Likely If Yuan Unties From Dollar

Fox:

The cultures are different. Unique products like Ipods, sure, but if they have an option of buying a US product or a Product made by their homeland, their will choose the home based product every time. With that, we don't make very many things that could compete with their prices anyway. If we did, the governments would impose tariffs so they didn't compete.

Gradual decoupling may be good, yes, but these Governments work swiftly.

Global Inflationary Pressures Likely If Yuan Unties From Dollar

Companies that operate in China will have to pay more for their labor if the Yuan increases in value against the dollar. That means they will have to charge more to us to maintain margins. That means inflation.