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UnsafestSpace t1_j69of35 wrote

Reply to comment by chetoman1 in Global Inflation Update by Infamous_Sympathy_91

> and the Chinese government barely printed a single dollar

The Chinese RMB is pegged to the USD, so whilst they weren't printing money (to prevent their property market overinflating even more than it already did), it did fuck the country in other ways.

You can't have a pegged currency and not keep in step with the currency you're pegged to via both interest rates and liquidity, without causing a major economic crisis.

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chetoman1 t1_j69ug3t wrote

Yeah it may be a double edged sword but the sharp end that’s aimed at China is rather dull. The number of countries that increased their yuan holdings while limiting or even reducing their USD is baffling. All while China has lower inflation (regardless of the peg) and reopening prospects. They urged the US to keep their rates low as fuck because arguably we’re cutting off our own limbs here in the states while China suffered a mere paper cut.

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