China has refused to revalue its currency. This take away most of the advantage of a dropping currency. Huge trade deficients with china are increasing the worry of world wide investors upon which we depend on for more than 43% of our bond sales. Tax cuts have made us noted less valuable to american wealthy and huge trade and budget deficients have made those same bonds less valuable to foreign investors.
The net result can lead to inflation. A definite cooling of the economy will occur as interest rates climb. But unless interest rates climb more will pass on US securities.
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