Condescension is SO attractive.
Ahem
The policy I am referring to is the engineered devaluation of the dollar versus the Euro. To illustrate, less than a year ago we enjoyed an exchange rate of approximately 86 cents to one Euro. It now is around 1.19 for one Euro. This was not a mistake, this was a designed move. This was done under the hope that we could improve the attractiveness of American goods in Europe.
The Chinese pegged their currency to ours, so the move did nothing to make Chinese goods relatively more expensive.
However, oil is traded in American dollars.
If inflation was really even half a problem you would be hearing the dims screaming about it daily Hourly. They just don't have much to run on.
I don't mean to sound condescending, it just sounded very odd to be talking about inflation of 25-30% in 6 mos. I haven't heard or seen anything resembling inflation especially that much from anybody anywhere close to the U.S.
Europe would be buying from us if they had the money. When they follow us out of the recession, they will start buying again.