General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forumsoriginalpckelly
(24,382 posts)?
MrSlayer
(22,143 posts)Perhaps they had the author on and were using graphs to make his point. It's not wrong in any case.
TalkingDog
(9,001 posts)Becoming China's Bitch: And Nine More Catastrophes We Must Avoid Right Now by Peter D. Kiernan has topped Amazon's bestseller list, holding on to the top spot as of February 27 and jumping all the way from #87,199. Kiernan's book is also currently #1 on Barnes & Noble's bestseller list.
girl gone mad
(20,634 posts)Zalatix
(8,994 posts)Let's assume China calls in America's debt. What happens to the value of the US dollar?
Next up, lesson #2. But first, let's answer this one.
Dreamer Tatum
(10,926 posts)Explain how that happens, please.
It's not an IOU on a napkin.
Zalatix
(8,994 posts)One does not simply "call in the debt". Basically it's a non-issue.
But let's assume that China were to find some way to sell off its holdings in US dollars. What next?
madrchsod
(58,162 posts)is there any other country in the world that can take the usa`s market for china`s goods? if they devalue the dollar it would cripple their exports to the usa. the plus side it would bring jobs back to the usa that would cheaper to make in the usa.
Zalatix
(8,994 posts)Europe is as big a market for China as the US is. Problem is, if the US dollar tanks, their exports plummet, too. (They export a lot to us.) It is possible that the Euro could become a temporary reserve currency ( NOT!!!!! ) but even if that were to happen, it would take quite a while. China would suffer an instant 20% loss to their exports. China lost 20 million jobs in 2008 because of far milder losses; a sudden 20% drop in exports, for China, equals economic evisceration.
China is trying to slowly build other export markets, like in Africa and South America, before they dump the US dollar. But even before the dollar gets dumped, the rise of other markets will mean the end of cheap foreign labor, since workers in those markets will want higher wages. Plus, China's own workers are demanding higher wages. That will kill their competitive advantage, and while that will damage their ability to export to S. America and Africa, the ongoing devaluation of the US dollar will multiply China's wage growth into an absolute double whammy against importing Chinese goods here.
In short: China doesn't want to do jack shit about America's debt to them. What they want to do is slow down the inevitable collapse of globalism as workers in other offshore outsourcing-haven nations demand higher wages, and their nations' currencies rise - which is a double-whammy against the whole of globalism.
bayareamike
(602 posts)aaaaaa5a
(4,667 posts)Erin's show is the lowest rated TV program of the night in primetime cable news. I guess they will try anything.