China says it has too much $ as foreign reserves surges past $3 Trillion.

Do you want to destroy $14.72 trillion American economy to counter $3 trillion Chinese foreign exchange reserves by devaluing the dollar?

 

Do you know what you are talking...? Tell me how is he going to destroy a $14 Trillion economy . Dick .

 

oh boy. another one from the left admiring a communist system where government has the power to missallocate capital on a massive scale and do it quicker than here. Soon my friend, you will see that the system you admire is poised to come to an abrupt end, and will be revealed to be the greatest fraud in the history of the world, with a misallocation of capital on a scale into the fixed assets you mention that's never been seen before. Admire your state communism, the market distoritions, and the corruption that accompanies big government that has yet to be revealed. You will soon be shown to be an ignorant fool who thinks with his heart, not his mind.

 

You don't understand how economy works. Dick .

 

In that case, North Korea should be the richest country in the world.

 

You have no idea of what you are talking about. This is the money transferred to China from US and other countries in exchange for goods. China has no choice but to take the money and invest it back in local assets in the countries of origin, or keep it in a vault loosing value.

If China starts playing games with the money it will result in import taxes. China is the beggar not the chooser. China has the problem, not the solution. If China is taxed at boarders, chaos and instability will erupt and the country will disintegrate faster than Libya. They are smart and they do not want that but also they know that this is more or less what they will get in nominal terms for the next 20 years because of the inflation China creates with its high growth rate to the rest of the world.

 

False. They have 3 trillion in RMB debt to get the 3 trillion in dollars.

 

bullshit, say it again with a straight face, did you forget 2008 and wall street - the definition of america and capitalism.

 

That had nothing to do with a real free market. That was a combination of Fed intervention (artificially low interest rates); gov't and quasi-gov't (Freddie, Fannie, CRA, etc.); and crony capitalism (anticipated bailouts, DC/Wall St. connections, etc.). There's no way that would've happened without the said players setting up the preconditions for a housing/derivative bubble.

 

then if devaluing the currency is the road to riches then argentina would be the richest country in the world.