Quote:
Originally Posted by The Reaper
Where is the upside for the Chinese in reducing the value of their dollar holdings, and increasing the cost of their products to their largest market, while they are having serious employment issues of their own?
Isn't this a better threat, for now, rather than an actual policy?
TR
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They can trade in their dollar holdings for IMF SDR's (due to our unconstitutional IMF vote allowing it
) and by securing oil, gold, silver, copper and land - all of which makes their currency viable as a reserve currency (or large portion there of) - the importance of which cannot be overstated.
They want sales to their own citizens to be a heavily weighted aspect of their future economy. They are doing the same things that we did to be a superpower.
They are not looking at the US as their only road to prosperity through sales as it is the quality of our jobs and the respectability of our currency which was the platform for this in the 1st place...
Just my .000002 - hopefully someone "in the know" will PM you and CC me