Quote:
Originally Posted by GreyWolf
Dump em on the market - if they were deliberately wanting to cause damage. But.. doubtful there is any intention of causing damage>
More likely they are not interested in devaluing their currency to suit the US. This has other effects with all other global trading partners and there is a stated policy that the Chinese government will maintain a strong trading environment for any corps investing in China - changing monetory policy will have a detrimental effect on investor corps. Ironically, many of these corps are US based - and it's them who will be losing out.
Hell - Chinese product is based on cheap labor and cheap enough already. If the US can't afford to buy cheap product - don't order it and make the stuff within the US and create some jobs.
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Exactly... They aren't stupid enough to dump them on the market; they are just playing on one of our biggest fears. If they did follow through with it they would be fucking themselves as bad as (if not worse than) the US. Not only would they pretty much make their $900B in US IOUs worthless (and they can't afford to take that kind of hit) but they would be leveling their main source of income by destroying their US consumer base.