User 143167

If China Is Recovering, How Will We Fare?

Correction: I mean "don't underestimated Uncle Ben".

If China Is Recovering, How Will We Fare?

This is a "pick your poison" competition, but just underestimated Uncle Ben. He knows better than anyone on the earth that the name of the solution to the crisis is "Inflation". So don't expect he will tighten monetary policy any time before the economy booming again.
If China boosts comodity inflaiton, so be it, Uncle Ben will throw more money into it and push it higher. It will hurt the US economy, but don't forget it will hurt China's too, maybe at a even worse degree. Therefore, if China has inflation too, it will tighten its monetary policy and reduce commodity demands too.
Who will be the first to fall in an inflationary environment? I think Uncle Ben firmly believes that wouldn't be the US.