Sunday, February 13, 2011

American Consumer is about to get the worst end of this deal

"mbridges,
China may be largest buyer of our debt, but we are also the largest buyer of their products. Thus it is a double edge sword.
Since there is no other country on Earth that buys as much, our currency not being worth anything means we won’t be able to buy Chinese products, and thus China makes significantly less money.
This is why the Chinese have been working so hard to implement the new currency system, without a significant hardship to the American People. They want to continue selling their goods to us.
I suspect that the Chinese see themselves as between the rock and the hard place. It is a very deadly chess match at the moment. And the American Consumer is about to get the worst end of this deal."

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