[kenavi]

Read the article, thanks.

In other words, foreign governments would rather buy dollars than buy our goods.

It sounds like a lose-lose proposition to me!

[frithguild]

In America we can withstand food inflation far better than in other places because spending on food is a relatively small part of our average income. In other countries, expenditures for food are a large part of all expenditures. With food inflation, rioting starts overseas easily, especially when parents cannot feed their children. Now look back in history at inflation during the Carter administration and how things went in Iran.

We are living in dangerous times.

[frithguild]

In other words, foreign governments would rather buy dollars than buy our goods.

It is more a function of the dollar being a reserve currency. QE1 and QE2 created hot outflows of money, especially into third world areas. Too many dollars mean that all currencies that are pegged to it have less buying power.