As this spending continues, we can expect it to accelerate into a death spiral. This foreign liquidation will be in addition to the domestic printing of dollars required to prop up the bond market. There will be an ever increasing sea of money chasing after a shrinking pool of commodities and finished goods. We’ve just seen the tip of the inflation iceberg.
All countries holding US Dollars are going to spend them until gone.
As this spending continues, we can expect it to accelerate into a death spiral. This foreign liquidation will be in addition to the domestic printing of dollars required to prop up the bond market. There will be an ever increasing sea of money chasing after a shrinking pool of commodities and finished goods. We’ve just seen the tip of the inflation iceberg.