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> I think you're right and China is just looking to rebalance its currency by drawing the dollar down a bit. In prep for having the Yuan as a global reserve cu
by jsn117 11y ago
> I think you're right and China is just looking to rebalance its currency by drawing the dollar down a bit.
In prep for having the Yuan as a global reserve currency.
- criley2 11y ago>In prep for having the Yuan as a global reserve currency. Actually, we just "denied" their request to be included in the IMF's SDR, and these responses are also interpreted by some as payback.
- toomuchtodo 11y agoIf this is payback, why were they kind enough to give us notice? They could've not given us notice and sold far more than they did.
- criley2 11y ago>If this is payback, why were they kind enough to give us notice? They could've not given us notice and sold far more than they did. Because it's the kind of muted, minor payback that two economies that are linked at the hip give each other. China sells like $500B worth of goods to US every year. Rocking the US boat rocks their export boat which rocks the Chinese middle class. Creating economic instability in America would lead to political instability in China, methinks.
- exelius 11y agoIt's not payback; this doesn't hurt the US in the slightest. If anything, it devalues the dollar a little bit, which isn't really a terrible thing (the dollar is pretty highly valued right now which hurts US exports).
- Asbostos 11y agoHow does this make sense? I always want the currency I have to increase in value, not decrease. Does anyone actually like it when their savings lose value and they can no longer afford things they used to? Sure it helps exporters export more stuff, but they're getting paid with more worthless money so what's the point?
- Redoubts 11y agoIt makes sense when you have debt instead of net savings. And it makes sense when your consumables are local, but you export internationally, so now your foreign customers can afford to buy more.
- DominikR 11y ago> It makes sense when you have debt instead of net savings. This is true for the US > And it makes sense when your consumables are local, but you export internationally, so now your foreign customers can afford to buy more. This certainly is not aside from financial products.
- meric 11y agoWelcome to the fiat monetary system. The current monetary policy is to have your currency lose value every year. If you don't want your savings to lose value, save in something else, e.g. gold, stocks, real estate.
- dragontamer 11y ago> e.g. gold http://i.imgur.com/YFlg1dH.png http://i.imgur.com/YFlg1dH.png Right.... you keep telling yourself that. Overall, yes, keep money in investments. But don't speculate on Gold, its one of the worst performers of all time.
- meric 11y agoGold is doing great in my currency. http://imgur.com/rYEBCQK http://imgur.com/rYEBCQK Also I buy stocks.
- ojm 11y agoCompared to what period? I look at 2011 to now and see a loss or no growth. For an asset that pays no yield. Sounds like a terrible investment. The stock market has raised considerably since then, and likely paid dividends.