Quote:
Printing money deludes the value of the dollar and can/will cause inflation/possible hyperinflation cost to imported commodities, which in turn will probably cause anything that is produced domestically that requires to use some type of imported good to make will cost more (price inflation). So all this money we are printing is hurting us.
|
Of course if all things are equal printing money will delude the value of the dollar. The problem is that credit and money is being destroyed left and right. If $100 billion in capital is destroyed and there is government bailout of $50 billion, then the bailout will not be inflationary. Inflation is caused by an increase in the money supply and/or supply of credit. Even if you increase the money supply via bailouts or whatever else, but the supply of credit declines in a similar fashion, then the losses in credit will neutralize the increase in money.
Anyhow, China hasn't explicitly bailed out any bank that I know of. But their markets are crashing and they are trying to inject money into their system. The government's action is very contrary to the government's GDP numbers etc.