Fed policies may or may not lead to inflation, but a billion new eastern consumers trying to reach western consumption ratios will strain the energy system enough to raise the price of necessities, if western consumption maintains. But it really has nothing to do with increasing the money supply or any policy(except maybe globalization). It’s more an effect of adding tremendous demand to a commodity system that has never been there before.
Chinese per capita oil consumption is about a twelfth of what US per capita consumption is and it’s dramatically increased in the last decade. There is virtually zero chance they can reach US per capita levels without dramatically dislocating western economies.
China, aware of this situation, have been quietly arranging long term bilateral supply contracts directly with producers, thereby, going around and taking production off the market.
Western powers, rely on their own perceived ability to outbid the competition.
