Quote:
Originally Posted by DirtyWhiteBoy
This topic is getting very little coverage in the American media. It's ALL OVER Asian news and as of today, it looks like it very well may be the start to it happening. If it does, it's curtains for the USA.
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Quite right. No demand for the US$ equals devaluation, which in turn creates hyper-inflation. If the US$ devalued, then it would be dropped as the petro-dollar as well (in favor of the Euro, most likely) -- which would cause further devaluation and more inflation.
Having said that, the Chinese would not be happy to see the value of their billions (trillions..?) of US$ turn into monopoly money -- so they would not take any action that would chain react into a devaluation of the US$, I think.