Tuesday, December 14, 2010
Video: Schiff Report: Chinese inflation is getting worse!
That spells "b-a-d-n-e-w-s" for Americans, because the Chinese will have to stop expanding their money supply and start contracting it to stifle inflation in their own country.
This means reducing exports to the United States and keeping more of their own goods.
As Peter Schiff notes, that's when U.S. inflation will speed up because they may stop hoarding our dollars - and lots of em - and may stop sending us their goods.
Gary North was right: Ben Bernanke is a juggler of digits. But China is juggling, too. It has a decision it has to make about its currency: The RMB.
It has to let its currency rise. The purchasing power of the RMB must go up in order for the 5.1 percent inflation to drop.
Ding! Ding! Ding! It may be time to invest in the RMB, while its still low.
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