Well that’s just it. Their banking and markets are nowheres near as “mature” or robust as the West. I read somewhere that the equivalent of a city the size of Chicago, with all the necessary raw materials - concrete, asphalt, steel, lumber, copper, glass, etc, everything - is being built every TWO WEEKS. But I’e also read it’s a boom that is out of control - some of the skyscrapers sit empty, even, things like that. The market boom is even more out of control.
When they have a hiccup, the whole world gets the flu? But getting back to inflation/cost of living - Everyone knows that governments have to inflate the currency, and pay off future obligations with “dollars” that are worth less. But lets hope not worthless! It’s just not possible, not the USA. For a lark, I just watched a YouTube of Nixon on Aug 15th, 1971 - the day he closed the “gold window” to foreign central banks. He mentioned that speculators were attacking the dollar, and this would put an end to that. He also slapped a 10 per cent tariff on imports, mentioning that his concern was with American jobs, etc.
China manipulates their currency, so it doesn’t increase in value. THe South American countries did the same, to guard against the opposite, a falling value. For latin america it was an incredible success, until it got out of hand, and exploited by the likes of Soros and similar. Mexico got hammered in that, and they had to devalue their currency significantly. At least in Latin America, the loans yes, were paid back with much cheaper money. In china, they will have to pay back loans that explode to the upside in price, as soon as this scheme fails. The repurcussions from this will be talked about for a very, long, time...