I think you overestimate their ability to absorb more pain and
underestimate ours. The Chinese can't risk a collapse in the dollar.Whatever
happens to us, the effect on the Chinese economy, and Chinese society, would
be devastating. Imagine 200 million people out of work and pissed off at the
government and you see the problem they face.


On Tue, Feb 24, 2009 at 12:23 PM, Gruss  wrote:

>
> > RoMunn wrote:
> >
> > http://articles.moneycentral.msn.com/
>
> Economic warfare is like any other warfare: the goals is hurt your
> enemy more than they hurt you.
>
> In other words, China could easily begin selling off US currency - not
> a lot, just a little - to cause us a great deal of pain and them some
> pain.
>
> They can begin doing that any time for any reason: policy dispute,
> trade disagreement, et al.
>
> And that's the problem.


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