China alarmed by US money printing – Telegraph.
China is justifiably nervous about the current administration’s policy of printing money to buy US debt. This tactic is BAD policy and is going to lead to inflation. How bad the inflation will be depends on several factors.
If Obama keeps printing money China will diversify into other currencies and gold. Their purchase of gold will be incremental so not to drive up the price. (yea, right.)
China looks at us and observes a country spending “tomorrow’s money today.” They have a saying, “he who goes borrowing, goes sorrowing.”
It is incredible to me that CHINA gets it. Yet we keep driving toward the cliff.
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