> I think you're right and China is just looking to rebalance its currency by drawing the dollar down a bit.
In prep for having the Yuan as a global reserve currency.
In prep for having the Yuan as a global reserve currency.
Actually, we just "denied" their request to be included in the IMF's SDR, and these responses are also interpreted by some as payback.
This is true for the US
> And it makes sense when your consumables are local, but you export internationally, so now your foreign customers can afford to buy more.
This certainly is not aside from financial products.
When you see your bank proudly advertising 1.9% rates on 60-month CDs, you know it's time to take some risks with your money... the kind of risk-taking that grows the economy.
http://i.imgur.com/YFlg1dH.png
Right.... you keep telling yourself that. Overall, yes, keep money in investments. But don't speculate on Gold, its one of the worst performers of all time.
When people buy gold, it's not because they think the manipulated price is worthwhile, it's because they believe it is intrinsically mispriced and are betting that there will be a price correction at some point.
I mean, can you look at this stock market which has miraculously doubled since 2008, all while the federal reserve has pumped trillions into asset purchasing, and believe our equity and asset markets aren't being heavily influenced by state level actors?
https://en.wikipedia.org/wiki/Executive_Order_6102
Holding anything more than 5 oz of gold was illegal between FDR and Nixon.
Nah man, Gold ain't worth it. Historically it has been seized by the State, and in "modern times" (after Nixon rescinded EO 6102) it's price has been horribly irregular and subpar other investments.
Even lowly Bonds have better long-term investment value.
Also I buy stocks.
I look at 2011 to now and see a loss or no growth. For an asset that pays no yield. Sounds like a terrible investment.
The stock market has raised considerably since then, and likely paid dividends.
Because it's the kind of muted, minor payback that two economies that are linked at the hip give each other.
China sells like $500B worth of goods to US every year. Rocking the US boat rocks their export boat which rocks the Chinese middle class. Creating economic instability in America would lead to political instability in China, methinks.