japan20000

No Chance of Inflation Anytime Soon

this article is full of wrong numbers, not just wrong but miles off:
1) the average house price in the USA is just abovr 200k now (existing, 259k new), and it was past 150k , not 100k, in 2001, and peaked at 270k in 2006 (existing)
2) according to IMF, in 2008, US economy was 14.2 trillion vs. 4.4 trillion for China, which is not 20% at all. China has overtaken Japan as the 2nd largest economy and Germany as exporter (just about, depending how you count it). It certainly drives incremental demand.

It's Good to Be the World's Reserve Currency

It is surprising to see little discussion about what ultimately backs a currency. That would be the economic output and the ability to secure it in the future. And I do not remember seeing on this post more broad considerations such as the fact the Americans have all possible natural resources under their feet, which cannot be said about Europe, and they have ONE 300-million-people market in which they can be put to use (as opposed to Europe that is reminiscent of feudal times in this respect). They also have an army to protect that economy and its external markets and suppliers. Does UK have any of this? Does Europe have any of this?