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30) How America Exports Inflation - Explained in Ten Easy Steps

How America Exports Inflation - Explained in Ten Easy Steps by Greg Simon from the excellent website  www.knowmadiclife.com


  1. American people buy stuff they don’t need from Chinese company with money they don’t have on US bank credit card. 
  2. US Bank creates new US dollars out of thin air by creating debt for American people and giving US dollars to Chinese company.
  3. New debt stays in America while new US dollars leave America.
  4. Chinese company takes new US dollars to Chinese central bank and exchanges for Chinese RMB. 
  5. Chinese central bank prints new Chinese RMB out of thin air to give to Chinese company in exchange for US dollars. 
  6. Chinese central bank puts US dollars in a vault out of circulation. 
  7. New US dollar’s are out of circulation, not impacting market value of existing US dollars and therefore not impacting US dollar price inflation. 
  8. New Chinese RMB are in circulation, negatively impacting value of existing Chinese RMBs causing Chinese RMB price inflation to rise. 
  9. US dollar value remains artificially high while Chinese RMB value declines.
  10. American people and Chinese people are poorer. US bank, Chinese company and Chinese central bank are wealthier. 

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