If investors think that holding US dollars will lose value, they will buy as many assets as they can or buy more solid currencies, the Yuan in particular. This will dump a lot of loose US dollars in the market as the Yuan and asset prices bubble even further. This can be an economic catastrophic scenario.
American Economics Thread
- Thread starter Bernard
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If investors think that holding US dollars will lose value, they will buy as many assets as they can or buy more solid currencies, the Yuan in particular. This will dump a lot of loose US dollars in the market as the Yuan and asset prices bubble even further. This can be an economic catastrophic scenario.
They can manipulate the rmb 5% upwards per year. That will create inflation in the US, but you have to sell your US stocks holdings.
at the moment, the US economy is doing fine comparing with most developed economies. the only thing that will change the US economic trajectory is inflation. inflation is running wild, taper is not enough. fed will be forced to raise interest rate and cut down its balance. the asset bubbles will burst, the economy may fall into recession. will that kill the US economy, or wreck the dollar? I doubt it, but certainly it will help China a lot.
No, never heard of it.
You can't really say that is doing fine. They have employed any kind of "financial instruments" (aka world dollar domination, infinite printing, currency manipulation) and still the economy cannot rebound. US economy is on mechanical support almost 2 years
They are becoming too predictable - projecting a bit too much.