U.S.-Chinese currency link creates spiral in global food costs: Worldwide commodity inflation looms as a threat (by Patrice Hill – The Washington Times)
EXCERPT: Loose-money policies in the United States have combined with robust growth in China and other emerging nations in recent months to set off a price spiral in food, energy and other basic goods needed to run the economy. The trend threatens to pick up speed and become an obstacle for the global economy this year as growth in the United States accelerates to as high as 4 percent and contributes to burgeoning demand for basic goods obtained in global markets.
The chain reaction behind the phenomenon is reminiscent of the commodity-price spiral that occurred in 2008, which led to record-high prices for oil, corn, wheat, copper, iron and other necessities. China, in particular, is playing a key role in translating the Federal Reserve’s loose-money policies — aimed at reviving the U.S. economy — into global commodity inflation through its policy of linking its currency to the U.S. dollar.