There is no way the Chinese, Japanese or anyone else sitting on trillions of US$ instruments are going to allow the US$ to go into free- fall and thus wipe out their reserves.
And by the way, Jonathan Anderson, Chief Economist at UBS in Asia, has commented that the real Chinese economy s smaller than Italy's. It's a low tech affair built on cheap-labour and exports of cheap goods. The rest is driven by direct foreign investment. China then tries to copy the technology and their economy gets a trickle down through the salaries paid by foreign firms. Take all that overseas driven manufacturing out and whats left?
Virtually no large firms there are making money - Carlsberg sold their brewery, VW has not made a cent.
BTW, I am in Hong Kong.
If you're living life on the edge, you've got too much room.
There is no way the Chinese, Japanese or anyone else sitting on trillions of US$ instruments are going to allow the US$ to go into free- fall and thus wipe out their reserves.
And by the way, Jonathan Anderson, Chief Economist at UBS in Asia, has commented that the real Chinese economy s smaller than Italy's. It's a low tech affair built on cheap-labour and exports of cheap goods. The rest is driven by direct foreign investment. China then tries to copy the technology and their economy gets a trickle down through the salaries paid by foreign firms. Take all that overseas driven manufacturing out and whats left?
Virtually no large firms there are making money - Carlsberg sold their brewery, VW has not made a cent.
BTW, I am in Hong Kong.
If you're living life on the edge, you've got too much room.