Just a random thought...
China has like trillions of USD reserves right? Lets imagine the scenario where China decides to suddenly dump all the USD in the market. What's going to happen?
- Everyone else is going to dump their USD as well.
- The USD will suddenly cease to be THE world currency
- The US will have difficulty with sustaining their trade deficit.
- The US might default.
Of course its not in China's best interest to do that. But... theoretically... China has the power to do that.
Scary?
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