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Yeah, might be a good time to get out of US dollars. They're going to be painful to hold, if China decides to make the US uncomfortable.
by Estragon 17y ago
Yeah, might be a good time to get out of US dollars. They're going to be painful to hold, if China decides to make the US uncomfortable.
- billswift 17y agoI voted this up, even though I think it's wrong, because it is a valid point. I don't think it's going to happen though, because it would screw up their own economy as badly as the US. Maybe if things weren't already so tight everywhere right now, but probably not even then.
- blahedo 17y ago...for now. There will come a time when dumping their dollars will no longer disadvantage China, and will indeed be to their advantage; but they need a somewhat larger middle class first. Give it ten or twenty years.
- rdtsc 17y agoInteresting point. It is a sort of a MEAD (Mutually Economic Assured destruction), a complement to the nuclear MAD.
- zmimon 17y agoYou would want to be extremely careful - despite all logic against it, the US Dollar spikes when just about any international crisis takes hold. The dollar's decline might well occur afterwards, but that would be a longer term consequence.
- MikeCapone 17y agoIf China kills the dollar by dumping their reserves, they're going to hurt themselves just as much if not more than the US. They wouldn't do that over just Google. That's small potatoes compared to that...