On Mon, 11 Jul 2005 19:55:14 +0000, NOYB wrote:


What will they cash them in for? US dollars? The yuan is already grossly
undervalued compared to the dollar. If China dumped T-bills, the dollar
would plummet even further relative to the yuan. China would the world's
largest holder of worthless (at least to the Chinese) money. At that
point, a US dollar wouldn't buy a piece of fake plastic dog **** from
China. What do you suppose that would do to China's economy?

And just what do you suppose would happen to our economy? Our massive
trade deficit is being financed by the Chinese to the tune of $1 billion
per day. Add to that the massive Republican budget deficits, and our
side doesn't look healthy enough for any trade war. The fact is, our
economy is now too intertwined with China's for any talk of a trade war.
A trade war would hurt both sides far too much to be a viable option.