The USA refuses to consume less than it produces. So it runs a deficit. Obama is pumping that deficit up to 15% of GDP . Where does the deficit money come from ? It must either taxed , borrowed or printed (counterfeited) . Clearly we have chosen to counterfeit our way to prosperity. The fed creates dollars and buys treasury debt. You cant expect existing holders of dollars or treasuries (like the Chinese) to be pleased with the reaming they taking. The world will move away from the dollar because it is a cheat . When that happens inflation away . Then the federal government will get smaller , not because it wants to, but because it is broke.
P.S. China is no more a manipulator of their currency than any other issuer of fiat currency is . The manipulator crap is just to try to push them around, but since we are broke and they aren’t that doesn’t work any more.
