Is the Dollar on Life-support?

China’s apparent support for the US dollar has a double impact. It supports the imperiled Treasury bond market, and it also keeps Chinese goods cheap for US consumers. That has a significant impact on US inflation: America’s trade deficit is deepening while import prices are rising.

The mystery of life blog

ASIATIMES Report “China is intervening in forex markets to soak up dollars, invest in Treasuries and effectively pay the bill of US fiscal stimulus.”

But why would China try to prop up the dollar? Remember, China’s strategy is to manage a peaceful decline of the United States. its strategy is to wait for the rotting apple to fall on its own rather than to shake the tree risking the wrath and fallout of a Samson seppuku.

See also 1; US Treasury Secretary Yellen and China’s vice premier talk about cooperation and economic recovery 2; China can help US out of its inflation trap

ByDAVID P. GOLDMAN/ JUNE 15, 2021

NEW YORK – Hating China may be the only thing that American politicians agree about, but China remains the prop and support of the American economy.

Americans can’t spend the trillions of dollars that their federal government has poured…

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