Reply #19: Your abstract middle school bromides aside, have you been following actual news?

[JackRiddler]

Apparently not.

China's purchase of T-bills in Dec. 2007 - late 2008, increasing their holdings by nearly 50 percent, financed the tripling of the deficit to cover for the criminal banks that went bankrupt and control the US government. They also made up for a sharp decline in T-bill purchases by other parties.

Now it's an open issue how long they're supposed to hold on to a potential junk currency and recommendations to stop buying dollars and diversify have been in the official Chinese press.

Hillary Clinton in one of her first statements as Sec'y of State saw fit to pitch T-bills as an excellent continuing investment for China. Why would she do that?

Obama echoed the comment a couple of weeks later.

March 13: Wen Jiabao announced that his country was “worried” about its holdings of over $1 trillion in US treasury securities, and warned that he wanted the US to assure China that it would maintain its good credit and “honor its promises” and “maintain the safety of China’s assets.”

One reason to prop up AIG with endless billions for its counterparties is that it scammed a good chunk of the Chinese workers pension action and if they default on that, China will retaliate on the US (financially).

Russia and China have repeatedly spoken on the dangers of the dollar's instability. It was a background issue at the G-20 beauty pageant.

Lula's not an idiot. He wouldn't advance the idea of Real-Yuan trade publicly if he didn't think it would find an echo with the Chinese. So he's probably talked to them about it. Why?

There have been many other statements, also after the recent $2 trillion Fed printing to keep inflating the assets of bankrupt criminal banks. Read up on the subject for a while.

The dollar advance was after a plunge to historic lows and mainly reflects the awesome sucking of money from abroad into the US to pay off on the insolvencies of the criminal banks. Not exactly a solid economic foundation.

Things change. Real world matters more than your hypothetical examples. Condescension, ignorance and unfounded confidence in the superiority of what happens to be your own nation's currency do not mix well, by the way.

And if you offered to buy my car, I'd have to decline because this is New York and I like to get around unencumbered by two tons of useless junk I have to feed and pay fees for and spend hours a day stuck in traffic sucking fumes with and moving from one side of the street to the other to avoid parking tickets.

But if you want to give me your money, I'll take it in euros and travel happily for a while.

Thanks!