Chinese President Hu Jintao returned to China from his visit in Washington D.C. where he met with President Obama to discuss the economy, monetary policy, and trade. The U.S. delegation once again made it a focus to accuse China of keeping its currency artificially low as WTF Finance previously reported in our article “Geithner Criticizes China”.
There aren’t many Economists that speak the truth when it comes to the U.S. Economy. Peter Schiff, President of Euro Pacific Capital, has been on record numerous times throughout the recent credit bubble warning of the consequences of the Federal Reserve’s loose monetary policy and correctly forecasting the housing collapse. In today’s interview on Tech Ticker he explains how monetary policy is the real cause of inflation.
“[inflation] is the consequence of what the government has done to try to stimulate the economy”
Peter Schiff predicts that China will have to ultimately allow its currency to rise significantly which “will unleash an inflationary nightmare here in the United States” as we’ve mentioned in our article “Greater Profit Margins Expected”.