strutzma

Will China Drop U.S. Debt? Unlikely

I agree with Wrixon, Option 1.5 is actually that they slow their purchases of Treasuries (note also that they're buying short term Treasuries lately, rather than longer dated paper) and increase their purchases of raw commodities with their existing dollars/Treasuries. This way they can talk tough to keep their own purchasing power while dumping their reserves for commodities or controlling stakes in their producers.

Thoughts on an Inflationary Depression

Do you see any chance that the current economic uncertainty will induce a significant increase in the savings rate, back to the rate(s) in the early '80s following the last bout of stagflation? This may be the only way to stem the rapid inflation you have otherwise indicated, however I would like your input on this possibility...?