China Now Looks Like The US Before Great Depression
To supply foreign countries with the dollars needed to purchase American exports, the United States government decided, not sensibly to lower tariffs, but instead to promote cheap money at home, thus stimulating foreign borrowing and checking the gold inflow from abroad. Consequently, the resumption of American inflation on a grand scale in 1924 set off a foreign lending boom, which reached a peak in mid-1928. It also established American trade, not on a solid foundation of reciprocal and productive exchange, but on a feverish promotion of loans later revealed to be unsound. Foreign countries were hampered in trying to sell their goods to the United States, but were encouraged to borrow dollars. But afterward, they could not sell goods to repay; they could only try to borrow more at an accelerated pace to repay the loans. Thus, in an indirect but nonetheless clear manner, American protectionist policy must shoulder some of the responsibility for our inflationist policy of the 1920s.
– America’s Great Depression by Murray N. Rothbard
This is the Austrian’s critiques of the inflationary policy in the US in the run-up of the Great Depression (by inflationary, it means that inflation of money supply).
In many ways, this is a description of what is happening now in China.