It's brilliant strategery! When all those foriegners holding greenbacks are screwed over by our worthless paper, we win!
Do you seriously believe that, or are you joking?
How do "we win" when WE are left holding our worthless paper?
Yes, that certainly worked against the Japanese, and I suspect it will even more so against the Chinese. Years from now, we’ll marvel at the chaos in China as their economy goes from a recession to a long brutal depression.
China has played a dangerous game with their currency, pretty soon the dam will bust and instead of a few folks dying downstream, the whole nation will be washed away.
Adam Smith in Wealth of Nations tried explaining this situation to the Brits in 1775, but even then as now, the Brits thought somehow they were being screwed in an import economy. And back then, gold indeed did back the currency. If trade isn’t fairly done, it corrects itself at the expense of the cheater. Pretty funny really.
I’m not a genius, I do work in the field and was smart/lucky enough to buy PJ O Rourke’s book “On Wealth Of Nations”.