Free Republic
Browse · Search
News/Activism
Topics · Post Article

Death of the reserve status of the dollar by a thousand cuts.
1 posted on 05/27/2012 6:58:45 PM PDT by DeaconBenjamin
[ Post Reply | Private Reply | View Replies ]


To: DeaconBenjamin

By giving China a place to put its money - and one much closer to home - they’ll have less reason to stop propping up our budget by lending us money. That will cause our interest rates to rise.
It would also be funny if China takes over Japan financially just these few decades after Japan conquered them militarily.


2 posted on 05/27/2012 7:59:00 PM PDT by tbw2
[ Post Reply | Private Reply | To 1 | View Replies ]

To: DeaconBenjamin

It is a positive step to let the Yuan trade more freely instead of the rigid dollar peg.


3 posted on 05/27/2012 8:59:24 PM PDT by Sawdring
[ Post Reply | Private Reply | To 1 | View Replies ]

To: DeaconBenjamin
No. Opportunity to take advantage of differences in the yen/dollar, dollar/yuan, and yen/yuan rate.

The Chinese don't understand the idea of free exchange rates. If they peg to the yen at a different rate from the dollar, they must unpeg the dollar. Otherwise, traders will just shift to the currency with the best rate, and I don't think the Japanese are dumb enough to allow their currency to be manipulated that way.

4 posted on 05/28/2012 12:19:56 AM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
[ Post Reply | Private Reply | To 1 | View Replies ]

To: DeaconBenjamin
Death of the reserve status of the dollar by a thousand cuts.

There would be a lot of long-term benefits to that. One would be a dramatic decline in our trade deficits. At the moment, the dollars sent overseas for our imports are often more valuable to the receiving country to hold as reserves than they are for purchasing stuff in return from us.

There would certainly be short-term pain, too. But, hey that's coming anyway.

5 posted on 05/28/2012 7:49:37 AM PDT by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
[ Post Reply | Private Reply | To 1 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson