RMB tail wags US inflation dog — David P. Goldman

The point to take away from this quick review of the data is that the American economy is so integrated with China that China has become the marginal price-setter for large parts of the US economy. The Trump tariffs on a wide range of Chinese imports failed to slow, let alone reverse, America’s dependence on China. The United States doesn’t have the capital stock or skilled labor to meet a surge in demand, and Americans paid up for Chinese goods because they couldn’t get them anywhere else.…

Asia Times
RMB tail wags US inflation dog

David P. Goldman
https://asiatimes.com/2022/02/rmb-tail-wags-us-inflation-dog/