Quote:
Originally Posted by DirtyWhiteBoy
I disagree. They are not up to their eyes in debt like we are. YES they will take a hit but 2 trillion is not really that much for such a massive country like China.
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Much (most?) of the hit wouldn't be those 2 trillion dollars, but the immediate drop in American demand, as well as the inevitable rise in American competition.
Keep in mind that with a far weaker dollar, American-made products would quickly become much more affordable for the rest of the world for the next few years.
A switch away from the dollar might even benefit the US in the long run, since a more volatile currency would eventually cause it to adapt to changes in its own economic situation relative to the rest of the world more quickly.
Of course, that's the
long term - you'd see virtually nothing of those effects for the next decade or two, since the impact of the dollar getting dropped as the world's reserve currency would initially outweigh them by far.