Are we in a currency war?
🖕FUCK CHINA🖕
I'm definitely not an expert when it comes to understanding the various currencies in the world, but this idea just hit me... what if the real reason for the non stop spending, stimulus and the country not seeming to live in reality is that we are in some kind of currency war with China?
Would the ever increasing national debt, spending, stimulus checks, etc. make sense if viewed from this perspective?
Curious if anyone out there might know... or if it is simply government stupidity?
Governmental stupidity.
If we wanted to engage in currency manipulation to improve the trade balance with China, the Federal Reserve would print US dollars and use them to buy RMB. This would devalue the dollar and increase the value of the RMB.
Printing a ton of money is almost certainly going to cause inflation. This will result in significant losses to those who own dollar denominated securities and those on fixed incomes. But, it will be pretty sweet to those who owe lots of money.
Those who own natural resources or means of production will only be effected by market disruption.
If you want to take advantage of it, your best bet would be to purchase real estate that you can rent out. But, do avoid areas that have rent control or limit rent increases... If inflation hits, you could get screwed if your tenants can pay pre-inflation rates, and you are forced to pay for repairs and taxes with post inflation dollars. The other thing would be to invest in things used to manufacture necessities.
Things will probably get wonky with interest rates. Inflation, and the prospect of future inflation typically substantially increase long term interest rates. But, on the other hand, there is a ton of US dollars sitting in bank accounts, looking for an investment, slowly evaporating due to inflation typically suppress them.