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Well yes, that's because it will soon be the second largest economy and has the capacity to do so. China buying US debt has been a good return on investment.
China is getting rid of it's US debt....
I guess China doesn't see things quite as rosy as you do.
It "probably" (fingers crossed) won't happen as China manipulates the yuan to keep its value lower than the dollar. Ya see, as long as that's the case, Chinese goods will be cheaper than American goods.
Incredibly simplified, but that is the idea.
Now, if something should happen.........?
Who knows?
If the value of the dollar dramatically falls in a short period of time, we're gonna be in deep doo-doo.
Interesting tidbit:
Some countries are pushing for the price of oil to be based on another currency or multiple currencies rather than the U.S. dollar. This is a big deal. You see, that would cause massive deterioration of the dollar's prestige.
If this happens, we WILL pay a lot more for gas. It's only natural that everything else will go up in price too. And it won't be the steady increase that we're so accustomed to.
It "probably" (fingers crossed) won't happen as China manipulates the yuan to keep its value lower than the dollar. Ya see, as long as that's the case, Chinese goods will be cheaper than American goods.
Slight problem with that is,there are NO American goods to replace the Chinese ones....
Quote:
Interesting tidbit:
Some countries are pushing for the price of oil to be based on another currency or multiple currencies rather than the U.S. dollar. This is a big deal. You see, that would cause massive deterioration of the dollar's prestige.
If this happens, we WILL pay a lot more for gas. It's only natural that everything else will go up in price too. And it won't be the steady increase that we're so accustomed to.
It will happen,there is no real benefit to keeping the USD as a reserve currency anymore....
It "probably" (fingers crossed) won't happen as China manipulates the yuan to keep its value lower than the dollar. Ya see, as long as that's the case, Chinese goods will be cheaper than American goods.
Incredibly simplified, but that is the idea.
Now, if something should happen.........?
Who knows?
If the value of the dollar dramatically falls in a short period of time, we're gonna be in deep doo-doo.
Interesting tidbit:
Some countries are pushing for the price of oil to be based on another currency or multiple currencies rather than the U.S. dollar. This is a big deal. You see, that would cause massive deterioration of the dollar's prestige.
If this happens, we WILL pay a lot more for gas. It's only natural that everything else will go up in price too. And it won't be the steady increase that we're so accustomed to.
And as we can see, life is made a living hell for those nations that want to opt out of using the USD to pay for or to sell their oil ..
Well yes, that's because it will soon be the second largest economy and has the capacity to do so. China buying US debt has been a good return on investment.
It's good for the Chinese as long as they keep their currency value below the dollar. Americans will purchase more Chinese goods cuz they're cheaper.
The American public needs to man up on debt. There's kicking and screaming when someone talks about specifically cutting spending and then there's kicking and screaming when someone talks about raising taxes to pay for the spending. We have to either cut a lot spending, raise taxes, or do a combination of the two somehow. Otherwise any talk about debt or deficits is just talk.
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