Re:German banks are hoarding so many euros they need more va...
by 300bps on Monday February 03, 2020 @01:06PM
(#22227004)
There are many factors and others have pointed out some of them. Here's another one:
The dollar's relative value to goods and services isn't rising... and it's because of countries like China that make goods and services for so few dollars.
Think about it - I can go to oldnavy.com and buy a shirt for $9. That shirt was made literally on the other side of the world, shipped, marketed, sold, packaged and delivered for $9.
The disparity in incomes and environmental protections between the U.S. and other countries makes it very difficult to trigger price inflation. And things just keep getting cheaper. Prices don't rise when supply of goods and services keeps pace with the demand from dollars.
The dollar's relative value to goods and services isn't rising... and it's because of countries like China that make goods and services for so few dollars.
Think about it - I can go to oldnavy.com and buy a shirt for $9. That shirt was made literally on the other side of the world, shipped, marketed, sold, packaged and delivered for $9.
The disparity in incomes and environmental protections between the U.S. and other countries makes it very difficult to trigger price inflation. And things just keep getting cheaper. Prices don't rise when supply of goods and services keeps pace with the demand from dollars.