China's most toxic export

Americans are getting worked up about one potentially poisonous import from China - toys with leaded paint. But they have yet to notice an even greater threat: inflation.

Americans are getting worked up about one potentially poisonous import from China toys with leaded paint. (See: China's grim toy story.) But they have yet to notice the most poisonous import they will get from China inflation. Just when the Federal Reserve is printing yet more greenbacks to save Wall Street's hide, numbers are coming out of China which suggest that money here is also far too loose.

Having exported monetary inflation to China via its US$700 billion trade deficit and low interest rates, the US is about to be on the receiving end of a payback in kind.

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