The Chinese Connection: Here's Why Inflation Won't Fall to 2% and Stay There Indefinitely

Where is the global deflator expansive enough to replace China's one-off deflation of global inflationary forces? There isn't one.

In broad brush, central banks got away with the illusion of permanently low inflation even as they pumped trillions in new currency into the global economy for one reason: China. It is useful to think of China in the early-to-mid 1990s as a system of vast, interconnected, untapped pools of:

1. Cheap labor just awaiting exploitation by global corporations…