china threatened to convert its dollar reserves if america gives it too much hell about its currency. this would cause the dollar to collapse.
are there any downsides to a weak dollar? it seems like it would boost the US economy greatly, just like the artificially weak yuan is doing for china. the only people it might affect are expatriates who live off of dollars. americans dont need to go to europe for tourism, they hate us anyway, and our beaches are nicer.
2007-08-08 23:46:36 · 4 answers · asked by privatize 1 in Politics & Government ➔ Politics
the US economy is not sagging due to the war. havent you seen the news lately? mortgage loan problems are causing it to sag, as well as illegal immigration. another liberal using the war as an excuse for everything.
2007-08-08 23:52:12 · update #1
China will suffer as much as we if they are so brash as to crash our currency. There's no way they'd be willing to pull such a stunt unless they are complete fools!
2007-08-09 00:22:03 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The intrinsic problem for China is finding a currency that isn't overvalued when compared to the Dollar. Most major currencies are . . . Second, China does most of it's business with countries that require payment in dollars . . . not really a credible threat on either side. I'll ignore your comments about tourism as they are a bit on the nasty side. The war debt is increasingly affecting consumer confidence (not a liberal conspiracy) which coupled with a positive saving rate would lead to certain recession.
2007-08-09 00:02:22 · answer #2 · answered by CHARITY G 7 · 0⤊ 0⤋
The US economy is sagging due to the Iraq war while that of China is booming which can eventually set the tone for trading. Wait for the future of of these two countries as to who will prevail.
2007-08-08 23:50:50 · answer #3 · answered by FRAGINAL, JTM 7 · 1⤊ 0⤋
Just wait till Opec goes from dollars to Euros...
2007-08-09 00:06:21 · answer #4 · answered by Chroma 4 · 0⤊ 0⤋