"unknown"? We're still here because China is the biggest buyer of our debt. If China should decide to invest elsewhere, who will be the next sucker to finance our big spending govt?
Good. Now maybe 'Our Manufacturers' will come back home.
Who else whould China consider investing in? And if the U.S. loses the capital to invest in their economy, they're down the tubes because we're holding China up.
China buys our debt because they have to in order to keep their currency pegged. If they unpeg and the price of imports rises, that will be great for domestic manufacturing, more jobs etc. More jobs, more taxes, less deficit, less outsourcing etc. Free trade works.
I'll finance it. The Gov. will just have to pay me more.
It is all just nonsense. If they move to a basket there will be pressure taken off os the dollar anyway. Ig the Euros and the Japanese are whining now just wait until the Chenese peg to the Euros and the Yen. Too funny. As ussual, the rest of the world want us to do all the work. GWB is not playing along.
If he could actually fix this "monetary mercantilist" game that has been played on us in this term, he should get a Nobel for economics. Not that he will fix it, but he will make a return to the older status quo quite politically painful for whoever follows him.
China is still only a one or two trillion dollar economy. How can an economy that size finance the debts of an eleven trillion dollar economy?
In the past (as in Clinton or carter) when ever this sort of thing happened we propped the dollar up whenever our "partners" starting whinging. We had less import so nobody cared and our "trading partners" (great euphemism, that one) coughed a bit and then got back on the gravy train as the markets returned to a "strong dollar."
CHina and the EU want to be global economic powers. Well, welcome to the club.
The Euros were not bitching about theireconomies when the EUro was at .75 to the dollar, now where they?
It is just that dang GWB going around and upsetting apple carts.
Right ON!!