Whenever the money supply grows relative to goods available prices will go up. Part of the reason you don’t see much cpi inflation is that we have (until relatively recently) experienced asset inflation instead (stocks, real estate, etc.). Secondly, our large trade deficit actually exports our inflation by simultaneously increasing the amount of goods and reducing the amount of dollars, domestically. What you are probably concerned about are all those dollars being exported. If and when they come home to roost the scenario you fear will come to pass and we will all have to run for cover.
Ooops... Yeah, that's what I meant!
What you are probably concerned about are all those dollars being exported. If and when they come home to roost the scenario you fear will come to pass and we will all have to run for cover.
Well, if they don't come home to roost, that means that these countries have basically been sending us all their exports for free, right? Somewhere along the line, they're going to want to get paid for it with something they can actually use. Looking over this thread, it seems you're more or less on my side - pro-gold, anti-fiat. So what I don't understand is, how can the pro-fiat people not see this? How can anyone just pretend it's not an issue?