Old cartoon more relevant than ever
Posted by Dave Bath on 2011-04-23
A post from 2007-08-14 with a KAL cartoon from "The Economist" is more relevant than ever, the 1.3 trillion Chinese reserve of US dollars then growing to 3 trillion now.
China and the US Talk Money
Wargame this – as soon as Asian consumption (which is paid for) starts to get close to US consumption (put on the credit card), China can release those floodgates and hit the US economy so hard it will find the cost of any military action, even maintaining existing capability, prohibitive.
Watch for more and more long-term international contracts where people want to buy in greenbacks and sell in baskets of other currencies.
See Also
- Barnaby was right and should have gone further (2009-12-15)
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