3 ms·
Printing tons of US Dollars to finance an enormous deficit in the balance of trade [1] seems way more unsustainable to me. The only reason it has been holding u
by legulere 11y ago
Printing tons of US Dollars to finance an enormous deficit in the balance of trade [1] seems way more unsustainable to me.
The only reason it has been holding up until now is actually the US Dollar reserves of China [2].
[1]: https://upload.wikimedia.org/wikipedia/commons/b/b5/Handelsbilanzen_Deutschland%2C_Japan%2C_USA%2C_Vereinigtes_Königreich.jpg https://upload.wikimedia.org/wikipedia/commons/b/b5/Handelsb...
[2]: https://en.wikipedia.org/wiki/Foreign_exchange_reserves_of_China https://en.wikipedia.org/wiki/Foreign_exchange_reserves_of_C...
- simonh 11y agoReserves which fell by half a billion dollars last year, and still falling. This is why the funds are betting against the Yuan. How far is China willing to see it's reserves fall before it blinks? http://www.wsj.com/articles/chinas-foreign-exchange-reserves-fall-107-92-billion-in-december-1452161583 http://www.wsj.com/articles/chinas-foreign-exchange-reserves...
- dingo_bat 11y agoDid you mean half a Trillion and not Billion? Because it seems to me that China has $1.5 trillion+ reserves, and half a billion drop would not be cause for surprise.