Quote:
Originally Posted by EdgeXXX
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.
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I'm sure they must have some clue about what they are doing and confident that whenever they will benefit - possibly by buying US assets. It may sound odd, but the Central Bank of China is still lending to the US govt at a rate of between $2-4 billion daily (and that is only 25%-30% of international daily borrowings).
Sure.. it would cause a big blip if the dollar "disappeared" (that's not gonna happen) and affect the customer base, - but so? They will probably still be left to supply that market if their product cost remains the same. Nobody else can fill that market - especially on short term and based on credit.
There used to be a phrase along the lines of "when the US dollar caught a cold, the rest of the world started sneezing" - and that did happen in the 80's. But, things have changed since then and eg. in China's instance - there is a much bigger spread of global trading partners.