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replied 2122d
TrashPosterInTheDark
If China does not fold to tariff threats, US will experience inflation. Interest rates will rise, and emerging markets will crash. https://goo.gl/LKvFdX
America First (for a while).
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TrashPosterInTheDark
replied 2122d
Why would the US experience inflation because of that?
replied 2122d
Here's a counter argument to my argument.
https://www.marketwatch.com/story/5-things-about-a-us-china-trade-war-that-might-surprise-investors-2018-09-11
replied 2122d
Because prices of goods will rise. Even though you personally might face more economic opportunities (so maybe inflation won't bother you), the cost of goods will definitely climb.
TrashPosterInTheDark
replied 2122d
This is not what inlfation actually is.
replied 2122d
"In economics, inflation is a sustained increase in the price level of goods and services in an economy over a period of time."
https://en.wikipedia.org/wiki/Inflation
TrashPosterInTheDark
replied 2122d
Who wrote that silly wikipedia article? Inflation is the increase of the money supply. Rise of prices is a symptom of it.
replied 2122d
Inflation describes a phenomenon. Increasing the money supply is a monetary policy that causes inflation. https://www.econlib.org/library/Enc/Inflation.html


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