Toto deVeer Posted October 7, 2010 Share Posted October 7, 2010 Ever the conspiracy theorist, I'm just wondering if the US and China have secretly reached an agreement to screw the rest of the world (at least for a while). Watching the dollar drop precipitously (at a pace that does not seem justified) makes me wonder... The US has asked China for a 20% upward revaluation against the dollar (under threat of import tariffs), and the dollar decline is approaching 20% on the /DX... Is there a secret plan afoot, to be announced at the G7 meeting, so that Obama/Dems can boast that they have 'solved the China problem' before the November elections? Quote Link to comment Share on other sites More sharing options...
R K Posted October 7, 2010 Share Posted October 7, 2010 Ever the conspiracy theorist, I'm just wondering if the US and China have secretly reached an agreement to screw the rest of the world (at least for a while). Watching the dollar drop precipitously (at a pace that does not seem justified) makes me wonder... The US has asked China for a 20% upward revaluation against the dollar (under threat of import tariffs), and the dollar decline is approaching 20% on the /DX... Is there a secret plan afoot, to be announced at the G7 meeting, so that Obama/Dems can boast that they have 'solved the China problem' before the November elections? I think it's more likely that after the Japs declared they would be buying dollars to offset China's J-Bond purchases, China switched to the Euro as their proxy dollar hedge. They said as much last week when suggesting they'd offer to take Greek bonds. They're trying to outflank Obama in the run up to the G20. Quote Link to comment Share on other sites More sharing options...
Toto deVeer Posted October 7, 2010 Author Share Posted October 7, 2010 I think it's more likely that after the Japs declared they would be buying dollars to offset China's J-Bond purchases, China switched to the Euro as their proxy dollar hedge. They said as much last week when suggesting they'd offer to take Greek bonds. They're trying to outflank Obama in the run up to the G20. Is it your thinking that this is not a US/China thing, but just a China thing preparing for the inevitable US protectionism that will soon be upon them? Quote Link to comment Share on other sites More sharing options...
Ruffneck Posted October 7, 2010 Share Posted October 7, 2010 Ever the conspiracy theorist, I'm just wondering if the US and China have secretly reached an agreement to screw the rest of the world (at least for a while). Watching the dollar drop precipitously (at a pace that does not seem justified) makes me wonder... The US has asked China for a 20% upward revaluation against the dollar (under threat of import tariffs), and the dollar decline is approaching 20% on the /DX... Is there a secret plan afoot, to be announced at the G7 meeting, so that Obama/Dems can boast that they have 'solved the China problem' before the November elections? so how does crashing the us dollar fix the china problem if the yuan is linked to usd? Quote Link to comment Share on other sites More sharing options...
R K Posted October 7, 2010 Share Posted October 7, 2010 Is it your thinking that this is not a US/China thing, but just a China thing preparing for the inevitable US protectionism that will soon be upon them? Precisely, yes. Obama does his bowing and scraping routine and they all go home. They're playing him whilst showing a clean pair of hands. We're already at war imo. Quote Link to comment Share on other sites More sharing options...
Toto deVeer Posted October 7, 2010 Author Share Posted October 7, 2010 (edited) so how does crashing the us dollar fix the china problem if the yuan is linked to usd? As the dollar crashes, China would give way to the US say +20% (or live with punitive tariffs) but then still have a devalued currency relative to the rest of the world. Since the US consumer economy is f*cked anyway, China then becomes a predator to Europe/Japan/Brazil/Australia/Canada etc. Somebody needs to put a stake through the heart of this vampire once and for all. Edited October 7, 2010 by Toto deVeer Quote Link to comment Share on other sites More sharing options...
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