China threatens 'nuclear option' of dollar sales

[TAE]

China are really being painted as the bad guy here considering the US is discussing trade sanctions and China have just responded by thinking about selling their stake in the people taking those sanctions.

Indeed.

 

[zoltan]

Unless the Chinese have a cunning form of Economic MAD in mind, this is as stated earleir, a not so subtle hint of their power & will "never" be used. Along with a resurgent Russia flexing its muscles, this is only to be expected.The US has freely used economic blockades, sanctions and tariffs to shore up its own economy at the expense of others.For too long the US has done whatever it has needed to force its own agenda on everyone else - this may go some way to redressing the balance in global terms ( although it is still the average prole on the street who takes the shit one whoever is currently global top dog)

A moribund failed presidency, litle sight of of natural successor to the present incument, a fragile corporate debt market and you could be excused for assuming that the US is a gravely wounded animal at the minute( It isnt ).

 

[jæd]

is that what 'made in china' implies on your side of the pond?

There's been one or two batches of contaminated goods that have originated from China...

 

[zoltan]

There's been one or two batches of contaminated goods that have originated from China...

given the volume of exports, the % of bad Chinese products is remarkably low - remember the Evian or Austrian wine fucks ups of recent European history

 

[rhys gethin]

China has been undervaluing their currency for some time now in order to artifically boost exports.

The Economist suggests that this is a very dubious notion (it depends on the way you calculate the value of a currency) and suggests that the US problems arise from the fact that its citizens are living on credit. The snarling at China masks the reality, so that the politicians don't have to deal with it. If anything, the dollar is undervalued at the moment.

 

[sleaterkinney]

I doubt if they are that stupid. I suppose if they want to start a worldwide recession that would tank their economy as bad as it would ours, then they can be my guest.

tbh, I don't think they're as tightly coupled as that, the UK avoided most of the recession the last time it hit the US. I think it's quite as simple as that, plus we could always join the euro.

 

[zoltan]

for seveal years now, the BoE has been actively ( aggresivley ) trading currencies to spread its risk - since flogging off the Gold reserves, they micor manage their xposure to reflct whats going on in the world - we would not be (should not be!) as exposed as we would have been say 5 years ago because of this

 

[dilute micro]

thing is would they survive it or wear it better than the states the answer is almost certainly yes...

Yeah like Russia did.

 

[dilute micro]

China is a country waking up, moving forward, optimistic, dynamic, becoming freer by the day. The US is going in the opposite direction (along with the UK).

China's big problem at the moment is dealing with pollution.

Uh... dealing with more than pollution.

 

[yield]

The response?

washingtontimes 10/08/07.

"President Bush said yesterday that China would be "foolhardy" to attempt to depress the dollar in retaliation for U.S. pressure over Beijing's reputed currency manipulation.

Mr. Bush said he had not seen the London Daily Telegraph report that Beijing was hinting at such a move but warned against any attempt by China to hit back at Washington using vast foreign currency reserves."