Blame Obongo & Democrats suicidal debts and spending and Federal Reserves Quantitative Easing programs. These are so in your face to the ChiComs that we are trashing the US dollars they are holding. They know we have been playing them for suckers and they want out. They can easily dump US dollars and buy-—>>
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Oil companies around the world
Natural resources companies around the world
Yes, but now they take it in the shorts. Massively.
They are getting whipsawed, with few to any chances of recouping that money because they are buying into stuff that’s already high.
What happens with the long term deflationary effects bite and commodity prices drop again?
10 years ago the AUD was worth half of the USD. Now it's about 1 to 1 and the trend is that the USD is still falling.
LINK (give it a few seconds to generate the chart) 10 year chart USD vs. AUD
Oil companies around the world
Natural resources companies around the world
I think they are already doing that, but gradually dumping dollars gives them more to invest. On the other hand, continuing the current arrangement allows them to protect their jobs (like "green jobs") in the short term, and gives them a lot of influence (e. g. Taiwan) over a POTUS who is already too eager to pander to anti-US regimes.
I think it's also important to note that Soros ("The man who broke the Bank of England") could strike before China does, so China might want to get out while they can. Since Obama is already doing some of Soros's work, that could happen if some day we elect a less fiscally irresponsible POTUS.