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That seems true but it's not. If any country with large dollar holdings were to begin dumping them, they'd saturate the market and devalue the rest of their own
by jhickner 18y ago
That seems true but it's not. If any country with large dollar holdings were to begin dumping them, they'd saturate the market and devalue the rest of their own dollars. For instance, if China were to begin dumping dollars, it's estimated they could sell maybe 25% of their holdings before the remaining 75% were worthless.
- david927 18y agoSo, with the same reasoning, no one with many shares of a company would dump them? China's been divesting dollars for a while and will dump to get that 25% if it has to.
- daniel-cussen 18y agoTrue, this might not be an option for China, Japan or Saudi Arabia, but Egypt, Switzerland, and Hong Kong are small enough not to get ruined.