"Asian debt withdrawal threat to US deficit"
An important passage contained within: "...if China and other Asian countries were to allow their currencies to strengthen against the US dollar, they would have less need to own US assets."
Exactly. All points bulletin to foolish "progressive" protectionists who inveigh against the "artificially low" yuan as the source of U.S. manufacturing job loss. OK, we'll give you what you want -- a 20-to-40 percent appreciation of the yuan against the dollar. Whoa, guess what, the People's Bank of China is suddenly unwilling to underwrite U.S. seignorage privileges. Whoa, guess what, the U.S., including especially the U.S. working class, is suddenly subject to the kind of austerity and restructuring the Washington Consensus-types routinely prescribe for everyone but the U.S. has been able to elude due the de facto dollar standard. I have nothing but contempt for the "progressive" China-bashers who fail to see all the pieces of the puzzle.
OK, I should vow not to get up on my soapbox concerning this topic any longer, but it really it gets me hot under the collar.
John Gulick
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