SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mike M2 who wrote (15261)6/15/2004 11:57:43 AM
From: BEEF JERKEY  Read Replies (1) of 110194
 
"the benefit to Asians is that they industrialize at a more rapid pace"

I can see that being a strategy of China and other less developed Asian nations. I do think China is interested in the transfer of technology and modernization of their economy.

Still that doesn't account for the way countries like Japan and Taiwan are accumulating US dollars. Between Jan 2002 and Dec 2003 Japans holdings of US dollars increased by $266 billion, Taiwan by $80 Billion. In the first 3 months of this year alone Japan bought another $142 Billion US dollars.

These kind of actions affect the relative value of the US dollar and may have actually stopped the dollar from totally imploding. Still the question arises "what happens if these countries were to actually want to exchange these dollars for something else like Euros or Gold?" The dollar's value, and all fiat currencies playing this game of competitive devaluation looks awfully precarious. How long can this shell game continue? The Us HAS to get it's deficits under control because already the developed nations of Asia are going to be holding too many US dollars - but that seems unlikely to happen. What can Japan do with all their dollars? - they will have to burn them - they will be unable to exchange them for anything without trashing the US Buck!

Its like Japan is in a situation - totally dependent on exporting to the US - that they don't know how to get out of. but are they seriously going to start burning US dollars just to get them off the market?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News