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China gives notice of changes that will hugely affect the value of the dollar...


TopCat®
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and, I assume, many other currencies around the world. see here Not good news by any means as undoubtably it will mean higher world-wide prices for everyone. Unless someone here more qualified knows differently of course! TC.

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Forum Editor

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"undoubtably it will mean higher world-wide prices for everyone."

I don't see why. China stopped funding the US Federal defecit back in 2011, and the world hasn't ground to a halt.

The truth is, although Chinese politicians are fond of threatening America with stories of how the Peoples' Republic owns $1.2 trillion of American debt, and could cause real trouble if they sold them off, in reality that is unlikely to happen. Even if it did, recovery would be swift and sure - America's friends around the world would pick up the slack, and China would have lost a juicy economic plum.

Communist China loves to rattle its economic sword, but when all is said and done it desperately needs to trade with the West. The Chinese leadership isn't going to make any decisions which would make Chinese goods more expensive in foreign markets. It would have a second peoples' revolution on its hands in no time if it did.

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Aitchbee

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The rest-of-the-world, [ do you remember that fanciful term in Sports' events like Golf, for instance? ], relies on the 'tsunami' of cheaply-made, Chinese manufactured products which have been 'spoon-fed' to willing Western governments [including USA & UK & Europe & Australia] for the last two or three decades. America and 'the rest of the world' need to cut-off the too-well-established business' trading ties with China, and face up to a future of rebuilding their own self-reliance on the basic requirements for a sustainable economy, I reckon.

I'll get off my soap-box now.

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Forum Editor

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Aitchbee

You quite obviously don't understand how a supply and demand market works. Like it or not, we live in a global market, and Chinese goods have succeeded so spectacularly for one reason - Chinese manufacturers can make them at a lower price.

The world wants cheaper electronic goods,toys, and pretty well every thing else, so China makes them. It's all pretty simple, and involves no spoon feeding.

As for cutting off too well-established trading ties with China, that's a ridiculous proposal, it's the last thing importers want to do.

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sunnystaines

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if the west pulled all its cheap labour factory set ups back to their own shores or to another cheap country china would have problems. They need each other.

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Forum Editor

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sunnystaines

In a global market we all need each other.

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