Yes, the dollar will worth less when high inflation comes, and double digit rate couldn’t stop the home price increase (as they hadn’t in 70s).
The situation boil down to this:
Will China’s 1B farmer demand higher quality food, and can our farmers provide the food at lower price?
This is happening because in China, many young people who have lived in the cities for the last decade are out of jobs and moving back to their home town. Their living standard will affect their parent’s if they find jobs (or start modernizing their farming indurstry) in their home town. Even they can’t find jobs in a year or 2, the “notorious” chinese savers will release their purchase power from their bank account to maintain their living standard.
If we can not feed them, we will see high inflation in food, gas, and milk. You will see high unemployment rate (indursty/production shift take time to adjust) and rising salary to cope with high price in staple items.
Oxford’s house will lost its value, but to his family, they do have more dollars in their bank account.
