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>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 eno
by 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 agoI've been reading this argument since at least 2003.
- crdoconnor 9y agoAnd? 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 agoExactly. 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.