china yuan pegged to dollar
China makes ... $232 Billion outta USA trade.
Their yuan is being under valued :: because pegged to dollar.
China says the yuan currency is undervalued by as much as 40 percent, making Chinese exports cheaper.
and holds $1TRILLION in US cash ... they like to trade it off ...
Effect::
could trigger a crash of the already-falling greenback and a spike in the US bond yields, which could then dampen the beleaguered housing market and put the world's richest economy into a recession.
Channelnewsasia.com: "Described as China's 'nuclear option' in the state media, such a move could trigger a crash of the already-falling greenback and a spike in the US bond yields, which could then dampen the beleaguered housing market and put the world's richest economy into a recession. When asked whether such an option would hurt China more than the United States, Bush said, 'Absolutely. I think so.' China reportedly holds some 900 billion dollars in a mix of US bonds. "
Their yuan is being under valued :: because pegged to dollar.
China says the yuan currency is undervalued by as much as 40 percent, making Chinese exports cheaper.
and holds $1TRILLION in US cash ... they like to trade it off ...
Effect::
could trigger a crash of the already-falling greenback and a spike in the US bond yields, which could then dampen the beleaguered housing market and put the world's richest economy into a recession.
Channelnewsasia.com: "Described as China's 'nuclear option' in the state media, such a move could trigger a crash of the already-falling greenback and a spike in the US bond yields, which could then dampen the beleaguered housing market and put the world's richest economy into a recession. When asked whether such an option would hurt China more than the United States, Bush said, 'Absolutely. I think so.' China reportedly holds some 900 billion dollars in a mix of US bonds. "
posted by faranglander at 11:15 AM
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