Re: What could China do to the American economy if they traded their dollars for Euros?

Zerge wrote:

China is not the only economic force out there. The moment they start
dumping dollars, the dollar loses value vs. other currencies, so other
countries start to pick up those dollars dropped by the Chinese, and
the market reaches a new equilibrium. At what equilibrium point, I
don't know. But it would reach it.

Well, yes and no. The problem is that one need to have dollars if they can
buy something with it. That means US is producing smtg. to sell.

That seems not to be the case anymore. All US corporations are moving their
manufacturing facilities offshore. From clothing (where US produce only 4%
of it) even to high technology (in 2005 US become a bigger importer of
HighTech than it exported) US currently it is 100% dependent by offshore
producers since our industrial base has been decimated by the
corporate-libertarian-republicans-neocons gangs of greed.

US dollar has been artificially kept high by Chinese crediting us and buying
bonds. If they decide to wage an economic war against US, they have all
what is required to bring US to it knees in a mater of few months.


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