We fund China’s growth. Their recent threat to unload their reserves after our urging them to revalue the RMB is a hollow threat IMO.
They unload their holdings, we stop buying, their manufacturing hits the brakes hard.
What we should really be afraid of is what they start buying their own products en masse, and in enough volume to support production capacities without exports to America. That’s when they’ll sell their US$, and their economy really takes off. Meanwhile the dollar tanks more, it becomes cheaper to manufacture here, but because anyone in the world can buy here they DO buy up our businesses, but to stop that governments control all business as our social capitalism moves to communism.
Look on the bright side though, at that point we probably have a trade surplus.
