| halogamer1989 said: Well he did say that http://money.cnn.com/2008/02/28/news/economy/Bernanke_inflation.ap/ But take into account that the US is borrowing heavily from China for expenses, say if China said to the US screw you we are not going to fuel a hole that you are creating and cuts their borrowing policy. Stagflation would be for kids then. |
I would say that the Fair Tax should be implemented if that happens. That alone will $12 trillion of capital back into the us economy.
And I am just curious. Why do you think China would do that. They have been buying us treasery bond for years so that their goods will be reletively cheaper to buy than us goods, if they stopped they would lose their second largest exporting country and possible start importing us goods.
