If china dumps their dollars then Bush will once again succeed on his objective, just like he succeeded in taking out Saddam Hussein. Accomplishing the objective at the highest possible cost. The yuan would be reevaluated and the trade deficits would disappear... not because of the Chinese not being able to export, but rather because of the US not being able to import . Another wise move by Bush.
look how many of those bastards there are...not to mention we were fighting Korea, and China jumped in... we should have nuked their commie asses. They can sit their asses over there and kill their daughters and talk shit all day....But when the armageddon switch gets flipped...GAME OVER CHINA. fuck those cocksuckers, and fuck you for talking shit about our military heroes.
I can't see China choosing to liquidate treasuries and sell US dollars, a significantly higher Chinese currency valuation would mean that multi-nationals would simply relocate production to other countries. Also, as another poster already mentioned, what happens to China internally when their unemployment rises dramatically?
China's threats are laughable. The dollar would drop? so what? It will drop anyway if these enormous deficits continue. mIght as well get it over with. T-bonds are registered, so we know which ones China holds. In an emergency they could be confiscated. I wouldn't have much sympathy for legal claims from a government that sanctions rampant theft of intellectual property and is a notorious human rights violator. Things China needs that US can deny to it: food, oil, building materials, pharamceuticals. Things the US needs that China can deny to us:......
People who think a war with China is just flat stupid. Even if China just blows off all the nukes it has on its own land, there will be no earth anymore. A war among the US, China and Russian means the end of the world. These 3 countries have enough nukes to destroy the earth. There was a joke. Nobody can predict what kind of weapons will be used in World War III, but everybody knows what will be used in world war IV, stones. Human beings will be back to stone age.
Why are you guys so upset about it? Aren't you these traders that react to price accordingly? Who cares if the USD worth shit, anyway, you'll react fast enough to be insanely rich in the "new standar currency" parameters. Besides, every solution for "threatened americans" is go to war? How childish sounds that? The US usually hire employes to fight their wars (the real people stay eating popcorn at home watching bombs at CNN meanwhile childrens are being murdered) so who will go to war if there is no money to hire them?