Because in the meantime they are dramatically restructuring their entire nation for the 21st century. Highway building is everywhere. New power plants are everywhere, from hydroelectric to wind power. High-speed rail (220 mph) is everywhere. Their economy is expanding dramatically and so is their rate of productivity. That’s absorbing a lot of this so-called “inflation.” They don’t yet have too much money chasing too few goods. They’ve got too much money chasing a whole lot of goods, which is staving off that day of reckoning.

They’ll get around to it. But by then, China will be the rising superpower, and we’ll be the declining superpower–if we don’t change things here in America.

We’re now in the same position as the British Empire was 1oo years ago: Still dominant worldwide, but with new upstarts (back then, the U.S.) impressing everyone as the countries of the future. In the 19th century and the early 20th century, the American money supply had expanded dramatically too. But we didn’t have hyperinflation. Because AMERICA itself was expanding dramatically. We got rid of those Indians and took their land for ourselves and exploited it. We took parts of Mexico for ourselves. America was booming everywhere, progress everywhere.

That’s what China is doing now. They’re using our playbook from the 19th and early 20th century.