Until it can't. Sounds flippant, but it is true. How many currencies are backed by a hard assets? Every major currency is based on promises. China is super screwed. Not only are they fiat, but they have to keep the yuan devalued with respect to the dollar in order to maintain their only advantage which is price. They have to be cheaper and the only way to do that is to ensure their money is worth less than our money.
Inflation really impacts the average man on the streets through increases in food and fuel prices. Two areas which very few people can do without and for the poor consume a lot of their disposable income. In China, rising food and fuel prices can lead to social unrest, so my guess is that the government subsidizes it. Which requires creating more currency out of thin air, which you guessed it, leads to more inflation.
Inflation is too many dollars chasing too few goods and services. It is basically a regressive tax, as the poor - who by definition have less income - still need to eat and get to work and end up see a higher percentage of their income taken away without anything to show for it.
It has been falling apart at the seams for a long time. That's why you are in lockdown. They are gearing up for the endgame: debt cancellation and planned economy run by bill, jeff and various -steins.
Until it can't. Sounds flippant, but it is true. How many currencies are backed by a hard assets? Every major currency is based on promises. China is super screwed. Not only are they fiat, but they have to keep the yuan devalued with respect to the dollar in order to maintain their only advantage which is price. They have to be cheaper and the only way to do that is to ensure their money is worth less than our money.
Inflation really impacts the average man on the streets through increases in food and fuel prices. Two areas which very few people can do without and for the poor consume a lot of their disposable income. In China, rising food and fuel prices can lead to social unrest, so my guess is that the government subsidizes it. Which requires creating more currency out of thin air, which you guessed it, leads to more inflation.
Inflation is too many dollars chasing too few goods and services. It is basically a regressive tax, as the poor - who by definition have less income - still need to eat and get to work and end up see a higher percentage of their income taken away without anything to show for it.
It has been falling apart at the seams for a long time. That's why you are in lockdown. They are gearing up for the endgame: debt cancellation and planned economy run by bill, jeff and various -steins.