3 ms·
It's a pretty good deal for us though: they produce concrete goods, we pay with abstract ones.
by Dilpil 18y ago
It's a pretty good deal for us though: they produce concrete goods, we pay with abstract ones.
- fauigerzigerk 18y agoUntil, eventually, you're running out of one particular abstract stuff called trust ;-)
- lionheart 18y agoWell yes, that's kind of what is happening now. However, as the article points out, even if they don't really trust us anymore, they have almost no other choice. This is exactly the kind of strange situation that happens when you're dealing with global economics which is so hard to understand for people that are only used to dealing with their own finances. I really have no idea what is going to happen, but its not going to be anything the typical doomsayers predict.
- fauigerzigerk 18y agoI don't think the US is losing trust yet when it comes to economics and I hope that never happens. But there's a temptation, if you owe money in your own currency, to just inflate your debt away. If the Chinese start to believe that the US government deliberately heats up inflation putting pressure on the dollar, trust would be eroded pretty quickly.
- Herring 18y agoI'm curious, what can China buy using those dollars? Is there really nothing at all? Someone mentioned buying fortune 500 companies, but I rememember the outcry when an oil company was about to be bought.