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Originally posted by lacrimoniousfinale
Perhaps someone can enlighten me on the significance of this. Surely the buyer and seller in any transaction are free to decide on which currency they will use. It could be dollars, yen, euros, sterling or the Swiss franc, just so long as both sides are happy. I don't understand why lengthening that list to include the Chinese currency should suddenly spell the end of the dollar and life as we know it.
Originally posted by SLAYER69
I appreciate the possible aspect.
But, I have an honest question. How will this play out for Iran? I mean many here are convinced that China would step in if Iran is attacked because they are so reliant on Iranian oil presently and not only that, but are also the Saudi's largest customer. Which gives China some leverage in the ME.
But, If they will have enough Russian oil to not only supply their own huge growing internal demand and now supposedly be able to export it, Doesn't that mean they wont be so dependent on Iranian oil?
And not only that, but will now compete with Saudi Arabia and Iran for oil exports? Which would theoretically make a relationship with both Iran and the Saudis less important and lose regional influence?
Something doesn't [Excuse the phrase] sound Kosher.
I'll take a wait and see approach.
edit on 30-9-2012 by SLAYER69 because: (no reason given)
Originally posted by beezzer
reply to post by hawkiye
Can we all now admit that Obama's economic policies have been responsible for this?
Can we all see that if Obama gets another 4 years, he'll utterly destroy the country!
To put China's ownership of U.S. debt in perspective, its holding of $1.2 trillion is even larger than the amount owned by American households. U.S. citizens hold only about $959 billion in U.S. debt, according to the Federal Reserve.
Many countries, including the U.S., have long complained that China's weak currency gives it an unfair advantage in selling its goods around the world. Many economists say China's currency policy has contributed to its large trade surpluses by keeping the yuan undervalued.
The Treasury's decision touched a nerve with Senator Chuck Schumer, a New York state Democrat whose legislation -- backed by both Democrats and Republicans -- was passed in October calling for retaliatory duties on Chinese goods if manipulation were found.
"The administration continues to let China get away with flouting trade rules just for the sake of diplomacy. Calling out China as a manipulator may be awkward, but it is time to take off the kid gloves," Schumer said.
"With the administration continuing to balk on this, it's up to Congress to act."
Originally posted by syrinx high priest
I think I'm in an ATS time warp, didn't this happen last month too ?
Originally posted by mobiusmale
So, China is going to pay for Russian oil with Yuan...therefore the U.S. Dollar is going to collapse, our economy is going to tank, and we are all going to die in WWIII.
Hmmm...a few counter points.
1) making American manufactured goods...
2) If China were to do something that created a sudden and steep drop in the U.S. Dollar (let's say it dropped in value 50%)...it would suddenly find that it's manufactured goods are no longer relatively cheap in the U.S. or elsewhere. Its Export economy would collapse overnight...because it has not yet developed a large enough middle-class in China to take up the production losses.
3) Oh, and China would lose about $600 billion in the former value of its U.S. Debt held...not that that would be a huge problem overall.
4) Right now, the Chinese Yuan is pegged to the U.S. Dollar in daily trading (just watch the daily currency charts). If they did not unhook...their currency would dive right along with the U.S currency...which people here are claiming would spell disaster. If they floated their currency away from the U.S. Dollar, and for some reason the Yuan then rose strongly against the Dollar - they would out of business in America (not to mention the rest of the world...see number 2 above).
It will be interesting to see if this new currency agreement on oil trades between China and Russia has any effect on U.S. Dollar values...I rather doubt it personally. But, if it does, I can see nothing but positive things coming to the U.S. economy as a result.
Economic Armageddon? I think not. WWWIII...why exactly again?