Incredible

"China, the largest creditor of the world's sole superpower, has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets," Xinhua (official China news agency)said.

This is incredible. They know full well that we borrow to buy their cheap goods because they keep/force/control their exchange rate. They keep it too low.

They do so, of course, to stimulate exports. The outcome, however, is that they have now huge amounts of US dollars.

The way to cure their problems is to let the Chinese currency revalue, thus discouraging foreign purchases of Chinese goods and reduce their holdings of US dollars.

Of course, they are not going to do it because their plants will become empty.

They are as guilty as we are.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest

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