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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?


To: michael97123 who wrote (249867)11/28/2007 11:52:37 AM
From: c.hinton  Read Replies (1) | Respond to of 281500
 
Re china...america has unusually low interest rates because of chinas willingness to accumulate dollars.

they are essentially guarenteeing to the world that if the dollar devalues you can still get a dollars worth of quality chinese goods.......its our very own Chinese Yuan Standard(as opposed to gold standard)

Breaking that Yaun Standard will be a very negative shock...

PS it will also be accompanied by arab decoupling.,,,,,,,