Quote:
Originally Posted by quantum-x
Here's the thing: If China dumps 1.4trillion USD, the currency is going to take a fucking HUGE hit. That's the summary. Yes, if you live in the USD, 1$ == 1$, but when imports start costing more and inflation sets in, the $1 from 2007 will not each $1 in 2009  |
On the upside, US exports will cost less. Also, if China dumps the USD then unpegging the Yuan from the USD probably won't be too far behind. This will result in the Yuan appreciating faster and US export goods, again, becoming cheaper.