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> What if they decide to drop a trillion onto the market while US has other crisis compounding value issues and currency runs? And sell it to whom? What happen
by neilwilson 6y ago
> What if they decide to drop a trillion onto the market while US has other crisis compounding value issues and currency runs?
And sell it to whom? What happens to every other currency in the world when that happens? Including all those countries who relying upon exports to the USA.
If China dropped a trillion onto the market, then they would probably get Mexican Pesos in return as the Mexicans hoovered then up to stop their currency getting into nosebleed territory.
The currency system is like a waterbed. You can't just jump on one end and not expect a systemic response and feedback that will throw you off just as hard.