Posted 7/23/2014 09:46 (#3981966 - in reply to #3981459) Subject: RE: Long Term this is a concern
Pittsburg, Kansas
China backing their currency means the trade between them will be without the use of USD for settlement.
That is good for them but not for maintaining purchasing power of USD as the USD becomes "less needed" for world trade. Anything that becomes less needed becomes less valuable. What becomes less valuable buys less. Or in other words, prices measured in that less valuable item inflate.