[lbo-talk] Prospects and consequences of a devalued USD

[brad bauerly]

>  If the renmindi traded freely in currency markets, you'd probably see a
> big movement into it from the USD and other major currencies. But maybe
> there are some FX traders on the list who have a better understanding of
> these gyrations.
>
> What would happen if the Chinese floated the renmindi on the open market is
that currency speculators would instantly buy it up force it through the
roof and then dump it.  The whole Chinese project of economic development
would be undermined and the global economy would spin into a downturn that
would make the last year look like the roaring 20s.  The Chinese, nor the
Europeans, neither want, nor will they let, their currencies replace the US
dollar.  It would be a complete disaster for their economies. Besides it is
in the short-term (say 10+ years) physically impossible.  There are not
enough Euros or Yuan on the global market to take the place of the US
dollar.

What is the reason that the bourgeois press is talking about the inevitable
decline of the US dollar?  Because it helps capital and hurts labour.

Brad