"I seriously doubt that the PRC is hoarding dollars instead of say, yen because they are afraid of military retaliation.
The dollar has some important institutional advantages and all the force of inertia of a long-established standard that has nothing to do with US military might." i think some balance of payments economics is needed here. china's current account surplus with the u.s= their capital account deficit with the u.s if they bought yen and sold dollars their currency would rise against the dollar immensely creating a current account deficit or forcing them to reestablish their net holding of united states financial/real assets. i highly recommend michael hudson's superimperialism -- -Nathan Tankus ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
