Now shopping mall giant (Dalian) Wanda, owned by Chinaâs richest man Wang Jianlin, and Vanke, the worldâs biggest residential real estate developer, founded by the mountaineering-loving Wang Shi, have âstunned the capital markets,â in the words of Chinese news site The Paper, by announcing a âstrategic partnership.â.
The second macroeconomic consideration of increased imports is the impact on exchange rates. As we have shown in the previous section, as U.S. consumers increase their consumption of imports, the supply of dollars in foreign exchange markets rises.
A $0.01 increase would be a revalue at around 1,000 percent. By raising the value that much you also increase the purchasing power of 85 trillion dinar! Economics 101= this has the same effect as adding currency to the money supply. That much of an increase with that much currency will bring hyper-inflation.