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Originally Posted by brewer12345
I think that's about what will happen. At least with the way things are now, China cannot afford to stop taking USD. They will keep buying our paper even if they do not want to because they are not going to go over the waterfall to see what happens next. They know it just as we know it. That's why the smarter people in power (Merkin, Chinese and others) want to see the situation defused gradually. So the Yuan creeps up against the USD and the Treasury no longer pounds the table over a strong dollar policy.
If we are really lucky, they will back the world away from the precipice in time to prevent more than a few members of the crowd from pitching over the edge.
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I see something similar: A beginning virtuous circle where China takes some of its savings and starts to buy clean water and energy technologies and infrastructure buildout from us and Europe. That's my bet anyway.
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Compounding: Never forget! Never not remember!
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