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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (31451)	10/27/2010 4:28:14 PM
From: GST	2 Recommendations Read Replies (2) \| Respond to of 71479

The thing to remember about China is that they are much more sensitive to food prices -- when ag commodities start to soar (and my DAG has doubled in price in a couple of months) they take notice and don't like it at all. If you ask people in the US, they are more numb to food prices which for the most part do not dominate our perceptions about prices in general. Soaring ag prices can destabilize China -- and they know it. Seen in the context of 'currency wars', this is the Chinese response: If the US prints the dollar to death then it will cause the current system of global pricing in dollars to fall apart because countries like China cannot afford to have inflation fan civil unrest. China is saying to us, make up your mind, do you want to be the world's reserve currency or not? Because if you do, you cannot just act like things are going to be fine if we try to inflate out way out of the current account deficit.