A decision by China to shift a major portion of its reserve to the euro or the yen or gold could trigger other central banks to follow suit. Nobody would want to be left behind holding a bagfull of dollars rapidly turning worthless. The herd psychology would be very difficult to control in this case because national economic survival would be at stake.
http://www.atimes.com/atimes/China/HJ19Ad01.html
2006-10-19 14:23:11 · 8 answers · asked by Pero 1 in Politics & Government ➔ Politics
Yeah, right. Ever heard of currency change?
2006-10-19 16:55:56 · answer #1 · answered by Anonymous · 0⤊ 0⤋
China is not responsible for the US, they are responsible to Chinese citizens. If they see the US dollar as going down (because of poor management of the US economy) they would be dumb to leave their money in US$. Would you?
It is true that it would be unfortunate for the US in that it could lead to other countries following suit, a positive feedback mechanism that would do bad things for the US, but that is hardly their fault.
Actually this question is kind of funny. I live in China, and see that they often misunderstand the US by thinking that every decision the US makes is aimed at China. Anything the US does that does not help China is interpreted as an attack. Of course, US domestic politics, and even international, can have many other considerations besides how it affects China. I find it interesting that people in the US may be looking at China with the same type of view.
2006-10-22 05:28:20 · answer #2 · answered by sofarsogood 5 · 0⤊ 0⤋
China is trying to usurp the monopolistic power of the USA. If USA does not give up its stand as self appointed caretaker of the world china will overtake USA in all matters. The easiest way for USA is to make neutral countries like India as member of security council.
2006-10-20 01:47:08 · answer #3 · answered by Brahmanda 7 · 0⤊ 1⤋
Doesn't China own all of America's dollars? Now they want Euro's.
2006-10-19 21:31:06 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Well China might not want the US dollar Now if we could just get the Mexicans to not want it we'd be OK.
2006-10-19 21:27:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Pancakes smells funny.
I think there is a real concern here, although this certainly is not the most important factor attributing to our declining dollar..
2006-10-19 21:28:07 · answer #6 · answered by wash_yer_nuts 3 · 0⤊ 0⤋
In the end it won't matter, the day will come when money will be thrown into the streets and no one will care because you won't be able to spend it. It's called the Last Days!
2006-10-19 21:27:38 · answer #7 · answered by delta s 4 · 0⤊ 0⤋
*yawn* Keep going pedro.
2006-10-19 21:25:24 · answer #8 · answered by Pancakes 7 · 0⤊ 1⤋