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China proposes to cut 2/3rds of its USD holdings
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2011 Apr 24, 5:19am 1,445 views 2 comments
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HousingWatcher
2011 Apr 24, 9:36am
Sounds like Giethner has to go to China now and start kissing some butt...
The chinese aren't going to destroy a huge chunk of their exports. The US can print off 2T and give it to them and say thanks!
Other countries will freak out as the USD drops, their exports drop, and their imports go up. China's exports will drop, while their currency climbs out of control against the USD.
The whole "currency war" was to prevent the US from doing this to themselves, what other countries are going to want this? They'll have to devalue their currencies, which means the yuan will have to go up even further against a basket of currencies, which cuts their exporting further.
http://www.zerohedge.com/article/china-proposes-cut-two-thirds-its-3-trillion-usd-holdings
Wow. This is quite the talk, but will they actually (gulp) walk the walk?