China and the U.S. Dollar: Nowhere to Run [View article]
Of course, the PRC and other trade-surplus countries will "spend" dollars as much as possible on other more inflation-friendly assets. But, the spent dollars themselves don't vanish. They simply deflate steadily over time relative to the goods purchased (especially if the goods are either durable and/or in limited supply).
China and the U.S. Dollar: Nowhere to Run [View article]