4 ms·

You mean the Chinese government will stop protecting their currency and hurt their export? That isn't likely to happen soon even though other governments want

You mean the Chinese government will stop protecting their currency and hurt their export? That isn't likely to happen soon even though other governments want them to float freely rather than in a price band. China doesn't hold enough USD to hurt the US economy without hurting themselves even more seeing as the bonds are non-callable by the buyer.

crdoconnor 9y ago
>You mean the Chinese government will stop protecting their currency and hurt their export? Right. Exactly like the US does right now. >China doesn't hold enough USD to hurt the US economy It isn't about who holds the little green bits of paper. It's about who can turn off the wealth spigot. The US would experience a huge bout of inflation right now if China decided to just float, it's just that China would probably suffer too. Once the US has nothing China wants (soon) they will have no reason to keep giving us a bargain on their imports.
- lamontcg 9y ago
  I've been reading this argument since at least 2003.
  - crdoconnor 9y ago
    And? In 2003 they weren't even close to technological and industrial parity but even then it was fairly evident that they would be within < 25 years. Now they're not far off parity - maybe 5-7 years before they can manufacture anything the US can. Trends that continue for a long time do not continue forever. That goes double for things that look like a free lunch.
    - craftyguy 9y ago
      Exactly. People seem to forget that the fastest (publicly known) supercomputer in the world is made of components that are 100% chinese made (including the CPUs). They are catching up fast, and yet folks continue to bury their heads in the sand.
baybal2 9y ago
>You mean the Chinese government will stop protecting their currency and hurt their export? For the last two years, their problem was the opposite. They went quite draconian on people selling RMB to keep currency strong. The main motivation is to allow CCP keep throwing money around the globe, buying allies

crdoconnor 9y ago

>You mean the Chinese government will stop protecting their currency and hurt their export? Right. Exactly like the US does right now. >China doesn't hold enough USD to hurt the US economy It isn't about who holds the little green bits of paper. It's about who can turn off the wealth spigot. The US would experience a huge bout of inflation right now if China decided to just float, it's just that China would probably suffer too. Once the US has nothing China wants (soon) they will have no reason to keep giving us a bargain on their imports.

lamontcg 9y ago
I've been reading this argument since at least 2003.
- crdoconnor 9y ago
  And? In 2003 they weren't even close to technological and industrial parity but even then it was fairly evident that they would be within < 25 years. Now they're not far off parity - maybe 5-7 years before they can manufacture anything the US can. Trends that continue for a long time do not continue forever. That goes double for things that look like a free lunch.
  - craftyguy 9y ago
    Exactly. People seem to forget that the fastest (publicly known) supercomputer in the world is made of components that are 100% chinese made (including the CPUs). They are catching up fast, and yet folks continue to bury their heads in the sand.

baybal2 9y ago

>You mean the Chinese government will stop protecting their currency and hurt their export? For the last two years, their problem was the opposite. They went quite draconian on people selling RMB to keep currency strong. The main motivation is to allow CCP keep throwing money around the globe, buying allies