>
> On Mar 24, 2009, at 8:56 PM, Philip Pilkington wrote:
>
> Yeah, why would they put this forward if they weren't thinking of
>> something
>> in the near future? A gradual move away from propping up the dollar might
>> be
>> possible in the current environment; indeed, would it not be in a way
>> desirable if the Chinese were looking for, shall we say, more stable trade
>> partners? Any conjecture on how this might look if practically applied? It
>> would have to be nothing short of a disaster for the US, surely...
>>
>
> And China, which holds a trillion or more in U.S. Treasury paper, wouldn't
> get hurt? And what market is there to rival the U.S.?
>
That's why I'm saying if there's any conjecture on how this would be practically and gradually applied. To be honest, if I were a Chinese financier I would have been looking for an oppurtunity to sidestep that trade relationship for a few years - that red ink has been the proverbial elephant in the room for quite some time now. In addition to this, if the Chinese have proved historically brilliant at anything its conquest through trade... They walk the Silk Road; we launch the gunships. I think we all know this has to happen somehow or another; the question is: how?