View Single Post
  #2 (permalink)  
Old 8th August 2007, 07:59 AM
touchring's Avatar
touchring touchring is offline
Join Date: Dec 2005
Posts: 7,547
iTrader: (29)
Rep Power: 1116
touchring is an unknown quantity at this point
Re: China threatens 'nuclear option' of dollar sales

Originally Posted by Drewbert

This is what worries me most. Naturally, if you want the dollar to devalue against the yuan, why would the chinese want US assets, an asset that is going to depreciate. They will dump the depreciating asset for other currency and resources.

The US has to find other ways to reduce overspending, e.g., by tightening credit or raising interest rates - which is the main culprit leading to over consumption and excessive borrowing.
Reply With Quote