If you do not actually cheap Chinese products on the world market, the United States and Europe should not be inflation. But on the products, on the contrary, in China to keep the U.S. and Europe long before the crisis of high growth, low inflation, the model is about to burst in 2007 and 2008, only backwards.
Suffering from inflationary pressures in China, the United States suffering from deflationary pressures.
U.S. government and Federal Reserve, on a huge deficit in the balance sheet and large, I hope that in the solid state. U.S. state budget deficit under control, the budget of the United States in 2011 was 3.8 trillion U.S. dollars, according to the latest forecast by the Obama administration, fiscal 2010 U.S. budget deficit will reach a record $ 1.560 Of the 60 .000.000.000 century of the last century, the economic crisis and the needs of war, the U.S. government began to adopt expansionary fiscal policy, deficit situation can not be collected. By the late ’80s, the size of the deficit over 2000 billion dollars. In the mid 90s of last century, is reduced due to economic prosperity, but recovered sharply in the new century, in 2004 exceeded $ 400,000,000,000. The financial crisis in 2009, the first 9 months of 2008 the deficit more than doubled. Fed’s balance sheet has expanded rapidly, the maximum expansion more than 9,000 billion to 3 trillion dollars.
Extension not significantly. CPI data, the U.S. is still in a state of deflation. Last slight, the most recent report of the Ministry of Labour in November showed U.S. producer price index (PPI) rose by 0.8%, quarter, slightly above market expectations for the largest increase since March. This gives Americans a glimpse of hope.
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