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China And Germany Express Concern Over Us Fed Move

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http://www.bbc.co.uk/news/business-11697483

Germany and China have expressed concerns over US plans to pump $600bn (£373bn) into the US economy.

German Finance Minister Wolfgang Schaeuble said the US would not solve its problems, but create "extra problems for the world" instead.

Some countries fear that the US Federal Reserve's move could hurt their exports by making their currencies stronger.

China's Central Bank head Zhou Xiaochuan urged a reform of the international currency system.

He did not elaborate how the system should be changed.

The US central bank announced on Wednesday that it would spend $600bn to buy government bonds, in the hope that the cash injection can kickstart the country's economy.

However, this weakens the dollar, boosting US exports while making imports more expensive.

These boys clearly have not twigged that the US looks after number 1.

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It's a trade war what did they expect?

I actually believe that Germany will be the winner of this race, as they can always feed off the soft underbelly of the EU. But China/Asia are scr*wed...

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I actually believe that Germany will be the winner of this race, as they can always feed off the soft underbelly of the EU. But China/Asia are scr*wed...

A contradictory statement I feel.

Who is buying German engineering right now?

What are the natural resources of this almost land locked country?

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A contradictory statement I feel.

Who is buying German engineering right now?

What are the natural resources of this almost land locked country?

Coal, forests, waterways, wind-power, people.

And that's just off the top of my head after 20secs thinking.

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Coal, forests, waterways, wind-power, people.

And that's just off the top of my head after 20secs thinking.

I believe they have the biggest sauerkraut mines in the World and one of the largest stockpiles of leather and rubber hardcore pornography?

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A contradictory statement I feel.

Who is buying German engineering right now?

What are the natural resources of this almost land locked country?

The reason I say this is that the on-going meme over the next decade or two will be big export nations getting 'whacked' (to borrow a term from the Sopranos). Germany at least has a captive market, whereas the Asians don't.

Edited by Toto deVeer

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Coal, forests, waterways, wind-power, people.

And that's just off the top of my head after 20secs thinking.

What, they’re going to burn people to make power?

That’s ridiculous – they’d have to have industrial scale processing camps and special ovens to deal with the……oh, er, well yes. I suppose they have precedence for this.

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The reason I say this is that the on-going meme over the next decade or two will be big export nations getting 'whacked' (to borrow a term from the Sopranos). Germany at least has a captive market, whereas the Asians don't.

Would you say Australia is likely to survive a global downturn? They seem like they could be self sufficient if China and others no longer want or need them.

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These boys clearly have not twigged that the US looks after number 1.

If the USA devalus it's currency, China may stop buying US bonds/currency, and might even start to sell what it has.

The USA is playing a very dangerous game of poker, where it doesn't seem to have noticed that it doens't actually HAVE any cards.

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If the USA devalus it's currency, China may stop buying US bonds/currency, and might even start to sell what it has.

The USA is playing a very dangerous game of poker, where it doesn't seem to have noticed that it doens't actually HAVE any cards.

And what does China have? A bunch of potentially empty promises.

EDIT: To add, with China pegging their currency low enough to slowly suck out the life blood from the US economy, do you not expect the USA to react? All that printed money is going to flood into the surplus economies, diluting their surplus, which will help the USA regain a competitive edge.

You have to ask yourself - who started this? The Chinese who have not allowed their currency to appreciate in the proceeding years or the USA for responding to it?

Edited by Traktion

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I watched Trichet at the ECB press conference yesterday answering (dodging) questions. U.S dollar weakness was one of them. He reckoned (he said) that he didn't think the U.S was pursuing a policy of dollar weakness. :rolleyes:

Read Here

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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