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…
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.
